Deduction Under Section 80U of Income Tax Act, 1961 for disabled persons
The Income Tax Act, 1961 provides deduction u/s. 80U in pursuance of which an individual (Indian citizen and foreign national) who is resident of India, and who suffers from not less than 40 per cent of any disability is eligible for deduction to the extent of Rs. 75,000/- and in case of severe disability to the extent of Rs. 125,000/-.
For availing deduction u/s. 80U, the assessee needs to fulfill certain legal formalities like he has to obtain a certificate from medical authority constituted by either the Central or the State Government, along with the Return of Income for the year for which the deduction is claimed. The intricate details of Section 80U is explained below in question answer form.
Q.1 What is the main difference between Deduction u/s. 80U & Section 80DD?
Ans. 80DD deduction is in case of the dependent of the employee whereas 80U deduction is in case of the employee himself.
Q.2 Do deduction amount U/s. 80U dependent on amount of Expenditure?
Ans. This deduction amount is a lump-sum one, irrespective of how much you spend on medical treatment.
Deduction could be claimed even for the year in which the certificate expires. Beyond this year, no deduction could be obtained till the certificate is renewed or a new one is obtained.
Q.3 Deduction u/s. 80U is allowed to whom?
Ans. Deduction u/s. 80U is allowed to any person being a resident (Indian citizen or foreign national), who, at any time during the previous year, is certified by the medical authority to be a person with disability or severe disability.
Q.4 What Documents are required to claim deduction Under Section 80U?
Ans. To avail a deduction under Section 80U, no bills or receipts are required. What is required is a valid certificate from a medical authority certifying the disability. Separate forms need to be filled for mental illnesses and all other disabilities. For illnesses such as autism or cerebral palsy form number 10-IA additionally needs to be filled.
Q.5 Which are the medical Authorities who can certify Under Section 80U?
Ans. The medical authorities who are deemed to certify are:
– A Neurologist with an MD in Neurology.
– For children, a Paediatric Neurologist having an equivalent degree.
– A Civil Surgeon or Chief Medical Officer (CMO) of a government hospital.
Q.6 What is meant by “Disability”?
Ans. “Person with disability” means a person suffering from not less than forty per cent of any disability as certified by a medical authority;
The disabilities are those which are specified in “The Persons with Disability (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995”.
“Disability” means-
(I) Blindness refers to a condition where a person suffers from any of the following conditions, namely:-
(i) Total absence of sight. or
(ii) Visual acuity not exceeding 6160 or 201200 (snellen) in the better eye with correcting lenses; or
(iii) Limitation of the field of vision subtending an angle of 20 degree or worse;
(II) Low vision – “Person with low vision” means a person with impairment of visual functioning even after treatment or standard refractive correction but who uses or is potentially capable of using vision for the planning or execution of a task with appropriate assistive device;
(III) Leprosy-cured- “Leprosy cured person” means any person who has been cured of leprosy but is suffering from-
(i) Loss of sensation in hands or feet as well as loss of sensation and paresis in the eye and eye-lid but with no manifest deformity;
(ii) Manifest deformity and paresis; but having sufficient mobility in their hands and feet to enable them to engage in normal economic activity;
(iii) Extreme physical deformity as well as advanced age which prevents him from undertaking any gainful occupation, and the expression “leprosy cured” shall be construed accordingly;
(IV) Hearing impairment- Hearing impairment” means loss of sixty decibels or more in the better ear in the conversational range of’ frequencies;
(V) Loco motor disability- “Loco motor disability” means disability of the bones, joints muscles leading to substantial restriction of the movement of the limbs or any form of cerebral palsy,
(VI) Mental retardation- “Mental retardation” means a condition of arrested or incomplete development of mind of a person which is specially characterized by sub normality of intelligence;
(VII) Mental illness– “Mental illness” means any mental disorder other than mental retardation;
Q.7 What is by “Severe Disability”?
Ans. Severe Disability is described as a person with eighty per cent or more of one or more aforementioned disabilities.
The benefit of deduction under this section has also been extended to persons suffering from autism, cerebral palsy and multiple disabilities.
Q.8 What is meant by “medical authority”?
Ans. Medical Authority means any hospital or institution specified in Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 by notification by the appropriate Government;
Q.9 What is meant by “appropriate government”?
Ans. “Appropriate Government” means,
i. the Central Government in relation to the Central Government or any establishment wholly or substantially financed by that Government, or a Cantonment Board constituted under the Cantonment Act, 1924, the Central Government;
ii. the State Government in relation to a State Government or any establishment wholly or substantially financed by that Government, or any local authority, other than a Cantonment Board,;
iii. the Central Government in respect of the Central Coordination Committee and the Central Executive Committee,;
iv. the State Government in respect of the State Coordination Committee and the State Executive Committee,;
Q.10 What is the amount of deduction available under section 80U?
Ans. For normal disability, assessee can claim deduction of Rs. 50,000 (enhanced to Rs 75000/- from A.Y 2016-17) while assessee with Severe Disability can claim deduction of Rs.100,000/-(enhanced to Rs 1,25,000/- from A.Y 2016-17)
Q.11 What is the procedure Involved to claim deduction under this section?
Ans. The assessee claiming a deduction under this section shall furnish a copy of the certificate issued by the medical authority in the form and manner, as may be prescribed, along with the return of income under section 139, in respect of the assessment year for which the deduction is claimed.
Where the condition of disability requires reassessment, a fresh certificate from the medical authority shall have to be obtained after the expiry of the period mentioned on the original certificate in order to continue to claim the deduction.
Author Bio
hello .sir . I am Rajan Gawde deaf and mute .kindly let me it . when will I meet you at which officer address pl . my my WhatsApp no 9221401908
Hi, my mother having one kidney. Shall I claim tax benefits under disability? please suggest.
I have hearing impaired problem in both ears. My son eligible for Under section 80DD for severe disability?
Hello Sir,
My client has met with an accident and he has to go through surgery leading to removing of one of his leg.
Is this case also be covered under the ‘Loco Motor’ disability.?
Also sir he has received sum of compensation for the accident under 3rd party insurance from insurance company. Will that amount be taxable and would it be required to declare in ITR for the respective Assessment year of receipt?
Whether Dr.’s certificate is required to be mention or submit with E return for claim u/s. 80U . Dr. has issued sever disability certificate in Form II, Any other certificate is necessary for claim
you should have a certificate from government hospital. they will chech the person and mention the percentage of diabilities. for 40 to 75% 75000
above 75% rs 125000.you pls consult also professional people
Sir,
I am a retired aged 75 years, defence pensioner suffering from Parkinson disease for the last 12 years. I have membership of ECHS from where I get treatement.I have helper to assist me in my routine daily chorus. I have more than 40% dissability as I can’t perform my basic task such as going to toilet ,,bath wearing the cloths ect. Am i eligible to claim deduction u/s 80U of IT Act 1961? I shall be greatful for your early response Thanks..
Hi Mr Bhandari,i m also in the same boat.
Plz advised under wich probision,i can abail tax revete off Rs 5 lakhs,i m paying to care tacker
Can a tax payer get benefit if his sibling is disable 40%. under income tax act.
His parents are not alive and dependent upon him..
I HANDICAPED ONE LEG FOOT IS NOT CORRECT HOW MUCH SHALL I CLAIM DEDUTION
Does this applicable for dependent mother
Dear Sir,
I have a certificate for 43% permanent disability (polio in right leg), which was issued in 2018. in mention permanent disability does not have an expiry date. But in my certificate mention disability type “PHYSICAL IMPAIRMENT”
But, Section 80U not mention this category
How can I claim the tax benefits under 80U?
Looking forward for your reply.
Regards,
Surendra Singh Shekhawat
Dear Sir,
I have a certificate for 43% permanent disability (polio in right leg), its permanent disability does not have an expiry date. which was issued in 2018. . on my certificate mention disability type ‘PHYSICAL IMPAIRMENT’. But in 80U not include this categeory (PHYSICAL IMPARMENT)
So,how can I claim the tax benefits under 80U?
Looking forward for your reply.
Regards,
Surendra singh Shekhawat
Dear Sir/Madam,
I would like to know is that possible to avail both (80U /80DD) befits
And to avail, 80dd benefits is the disability certificate enough?. Me and my wife (housewife) both are a handicap.
Please guide.
Many thanks for your guidance in advance.
Best Regards,
Benefits to couple in tax, where one is 70% handicapped and other is 100% blind
I have DVT (DeepVein Thrombosis) in left leg, can I claim tax exemption under the Act?
My son having 40% neuro disability.I get all medical expencess from deptt by reimbursement.Expencess on medicine is 50,000/ yearly all reimbursed.How can I get further tax rebate of Rs 75000/under80dd.please clear it
Dear Sir
My senior colleague is a retired bank officer since Nov 2013. Since November 2015 he is suffering from MND (Motor Neurone Disease) . During FY 2016-17 his medical expenses was more than 15 lakhs. He is surviving on home ventilator under semi ICU conditions, with liquid nasal feeding. Monthly medical expenses on nursing, medicine and physiotherapy comes around 45000/-. He is unable to read, write and speak. Only recognize . Is he eligible to get rebate under 80U upto Rs.125000/-. His annual pension is approximately 650000/-.
Dear Sir
My elder brother is 40% disable and fully dependent on me can i avail tax benefits.
Dear Sir
Can i avail tax exemption for my elder non-employed brother having 40% disability.
I am Ex-serviceman drawing Service pension and Disability pension(50% Disability).Can I have deduction under 80u and what amount
Sir I have ear impairment both the ears above 90% loss, I got certificate issued at Hyderabad ENT hospital by a board of doctors who gave me life time hearing impairment certificate for claiming Tax exemption. it is photo attested certificate, do i have to get another certificate or is this sufficient.Request enlighten on this.
What is USE of putting Questions on this site When there is no REPLY for any Question? MLL
Sir, I am an exservicemen from Army and received disability penion @ 40% per month. Can I claim the disability pension under this section or not. If not in which sec I can claim.
sir can person with heart problem that is he suffered from heart attacks can claim deduction u/s 80u