Section 80U – Tax Deduction for Disabled Individuals

Updated on: Mar 20th, 2024

|

5 min read

There are certain sections under the income tax laws of India which provide tax benefits to individuals if either they or any of their family members are suffering from certain disabilities. 

Section 80U offers tax benefits if an individual suffers a disability, while Section 80DD offers tax benefits if an individual taxpayer’s dependent family member(s) suffers from a disability. This article is centered around discussing the tax benefits available under Section 80U.

Who Can Claim Deduction Under Section 80U?

A resident individual who has been certified as a person with a disability by the medical authority can claim the tax benefit under Section 80U. For the purpose of this section, a person with a disability is defined as a person who has at least 40% disability, certified by the medical authorities.

For the purpose of this section, disability has been defined as one of the following:

  • Blindness
  • Low vision
  • Leprosy-cured
  • Hearing impairment
  • Loco motor disability
  • Mental retardation
  • Mental illness

The section also provides a definition for a severe disability which refers to a condition where the disability is 80 percent or more. Severe disability also includes multiple disabilities, autism and cerebral palsy.

Quantum of Deduction under 80U

A deduction of Rs. 75,000 is allowed for people with disabilities, and Rs. 1,25,000 deduction for people with severe disability.

Requirements to Claim Deductions Under Section 80U

There isn’t any documentation requirement apart from the certificate certifying the disability from a recognized medical authority in Form 10-IA. There’s no need of producing bills for the cost incurred for the pursuance of treatment or such other expenses.

For making a claim under this section, one must submit the medical certificate indicating the disability together with the income tax returns as per Section 139 for the relevant AY. In case the disability assessment certificate has expired, one would still be able to claim such deductions in the year in which the certificate expires. However, a fresh certificate would be required from the succeeding year for claiming the benefits u/s 80U.

Certificates could be obtained from the medical authorities who could be either, a neurologist having a degree of Doctor of Medicine (MD) in Neurology (in case of children, a pediatric neurologist having an equivalent degree) or a civil surgeon or Chief Medical Officer in a government hospital.

This deduction can be claimed only if you are opting for the old tax regime.

Note: If the disability is temporary and requires reassessment after a certain period, then the certificate’s validity starts from the assessment year relevant to the financial year during which it was issued and ends during the assessment year relevant to the financial year when the certificate expires.

Form 10-IA

 

Which medical authority can issue certificates under section 80U?

Medical authorities who are eligible for issuing a disability certificate can be any of the following:

  • A neurologist who has a degree of MD (Doctor of Medicine) in Neurology
  • A civil surgeon in a government hospital
  • A Chief Medical Officer in a government hospital
  • A pediatric neurologist who has a degree of MD (Doctor of Medicine) in Neurology in case of disabled children

Difference between Section 80U and Section 80DD

Section 80DD provides tax deductions to the family members and the kin of the taxpayer with a disability, whereas Section 80U provides deductions to the individual taxpayer with a disability himself.

Section 80DD is applicable if a taxpayer deposits a specified amount as an insurance premium for taking care of his/her dependent disabled person. Under section 80DD, the deduction limits are the same as Section 80U. Here, a dependent refers to the siblings of the assessee, parents, spouse, children or a member of a Hindu Undivided Family.

In other words, if an individual incurs expenditure for his dependent relative & claims deduction under section 80DD, the latter will not be eligible to claim deduction under section 80U for his disability.

Deduction under Section 80U or 80DD can be claimed only if the taxpayer opts for the Old tax regime.

Frequently Asked Questions

When can an individual claim a deduction under section 80U?

An individual who has a prescribed disability with at least 40% disability can claim a deduction under section 80U of the Income Tax Act.

How can an individual claim the deduction under section 80U?

An individual or person with physical disabilities can claim the deduction under section 80U while reporting income in an income tax return.

Which certificate should I furnish to claim a deduction under section 80U?

The individual should furnish a copy of a medical certificate under section 80U along with the income tax return. The medical certificate should be based on the disability and the prescribed medical authority. The certificate should be submitted in Form-10IA which needs to be furnished along with the Income Tax return. 

What is the amount of deduction under section 80U?

The amount of deduction available to a disabled individual is Rs 75,000. In the case of 80% disability, the deduction is Rs 1,25,000.

Can I claim deduction under section 80U and 80DD simultaneously?

No, you cannot claim deduction for both of these sections at the same time.

Do I need to submit any proof of expenses to claim 80U deduction?

No, you don’t need to submit any proof except a medical certificate as this section provides a flat deduction as per disability percentage.

Which is more beneficial, Section 80U or 80DD?

As the Limit of deduction available under both of the sections is same, both are equally beneficial. An individual can therefore avail any tax benefit under any of the sections, as the case may be.  

Can a person with a temporary disability claim a deduction under Section 80U?

Yes, A temporarily disabled person can also avail tax benefit under the section provided that he furnishes with his Income Tax return, the medical certificate of disability issued by a prescribed Medical Authority from the financial year in which it was issued till the date of its expiry.

Public Discussion

Get involved!

Share your thoughts!

summary-logo

Quick Summary

Section 80U of India's income tax laws provides tax benefits to individuals with disabilities. Individuals with disabilities certified by medical authorities can claim deductions. A deduction of Rs. 75,000 is allowed for disabilities and Rs. 1,25,000 for severe disabilities. No documentation is required apart from disability certification. Medical authorities authorized to issue certificates include neurologists and civil surgeons. Difference between Section 80U and Section 80DD is clarified.

Was this summary helpful?
liked-feedbackliked-feedback

Clear offers taxation & financial solutions to individuals, businesses, organizations & chartered accountants in India. Clear serves 1.5+ Million happy customers, 20000+ CAs & tax experts & 10000+ businesses across India.

Efiling Income Tax Returns(ITR) is made easy with Clear platform. Just upload your form 16, claim your deductions and get your acknowledgment number online. You can efile income tax return on your income from salary, house property, capital gains, business & profession and income from other sources. Further you can also file TDS returns, generate Form-16, use our Tax Calculator software, claim HRA, check refund status and generate rent receipts for Income Tax Filing.

CAs, experts and businesses can get GST ready with Clear GST software & certification course. Our GST Software helps CAs, tax experts & business to manage returns & invoices in an easy manner. Our Goods & Services Tax course includes tutorial videos, guides and expert assistance to help you in mastering Goods and Services Tax. Clear can also help you in getting your business registered for Goods & Services Tax Law.

Save taxes with Clear by investing in tax saving mutual funds (ELSS) online. Our experts suggest the best funds and you can get high returns by investing directly or through SIP. Download Black by ClearTax App to file returns from your mobile phone.

Cleartax is a product by Defmacro Software Pvt. Ltd.

Company PolicyTerms of use

ISO

ISO 27001

Data Center

SSL

SSL Certified Site

128-bit encryption