Section-80U-Income-Tax-Act

Section 80U – Income Tax Deduction

Section 80U – Income Tax Deduction

The Government Of India wished to introduce a facility in the Income Tax Act for providing a concession in the tax liability to disabled persons. Hence, Section 80U was introduced in the Act. The section provides a maximum deduction of Rs. 75000 in the case of a person with moderate disability. On the other hand, in case the assessee is suffering from severe disability, the section allows a deduction of Rs. 125000.

Disability under Section 80U

Disabilities are defined in The Persons with Disability (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995. Persons suffering from any of the following kinds of disabilities, as certified by a medical authority, qualify for a tax deduction as per Section 80U. The following disabilities are eligible to claim a deduction under the Act:

  • Blindness
  • Low vision
  • Leprosy-cured
  • Hearing impairment
  • Locomotor disability
  • Mental retardation
  • Mental illness
  • Autism
  • Cerebral palsy

Eligibility

Tax benefit can be availed by any resident individual who is certified as a differently-abled person with any of the above disabilities by the competent medical authority. The following kinds of medical authorities are competent to certify a person to be disabled:

  • A Civil Surgeon or Chief Medical Officer (CMO) of a government hospital.
  • A Neurologist with an MD qualification in Neurology
  • In the case of children, a Paediatric Neurologist having a degree equivalent to MD

Deduction limit

For deduction under section 80U, individuals or persons with disability are categorized into two types:

Person with Disability

A person with a disability means the person is suffering from 40% of disability. If a person has at least forty percent of a disability, then the assessee is eligible for a deduction of seventy-five thousand rupees.

Person with Severe Disability

A person with severe disability means a person who suffers from at least eighty percent of disability. Such a person is eligible for a deduction of one lakh and twenty-five thousand rupees.

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