Section 80U - Tax Deduction for Persons with Disabilities
Section 80U of the Income Tax Act provides a deduction to resident individuals who are certified as persons with disabilities. This deduction helps reduce taxable income based on the severity of the disability.
What is Section 80U?
Section 80U of the Income Tax Act, 1961, allows a tax deduction for resident individuals who have been certified with a disability by a recognised medical authority. This deduction is aimed at reducing the financial burden on persons with disabilities.
Eligibility Criteria
- The taxpayer must be a resident individual.
- Disability must be certified by a recognised medical authority during the financial year.
- Only the disabled individual can claim the deduction for themselves.
Types of Disabilities Covered
Disabilities recognised for Section 80U include:
- Blindness
- Low vision
- Hearing impairment
- Leprosy-cured
- Locomotor disability
- Mental retardation
- Mental illness
- Autism and cerebral palsy (for severe disability)
These are part of the definitions under the Persons with Disabilities Act and related medical certification standards.
Deduction Limits
The deduction under Section 80U depends on the level of disability:
- Person with disability (≥ 40% disability): Rs. 75,000 deduction.
- Person with severe disability (≥ 80% disability): Rs. 1,25,000 deduction.
How to Claim Section 80U Deduction
To claim the deduction under Section 80U:
- Obtain a medical certificate (often Form 10-IA) from a recognised medical authority certifying the disability.
- Include the claim when filing the Income Tax Return for the applicable assessment year.
- No bills or expense receipts are required — only the certificate is necessary.
Tax Regime Applicability
Section 80U deductions are available only under the old tax regime and cannot be claimed under the new tax regime.
Important Notes
- NRIs are not eligible for this deduction; it is only for resident individuals.
- The disability certificate’s validity matters for continued claims across financial years.
- Section 80U differs from Section 80DD, which applies to dependents with disabilities.
