Section 80U of the Income Tax Act, 1961, deals with the deduction for persons with disabilities. By offering a deduction on their taxable income, it aims to reduce the financial burden and make a society more inclusive where cost of disability doesn’t become a barrier.
This article details the process of claiming the deduction, outlining the eligibility criteria and the range of conditions recognised under the Income Tax Legislation.
Section 80U of the Income Tax Act, provides specific tax benefits to individuals with disabilities. The law recognizes several conditions as disabilities as long as they involve at least 40% impairment. These conditions include:
To qualify for the tax deduction under Section 80U, an individual must be a resident of India and certified by a medical authority as having at least 40% impairment due to one of the recognized disabilities at any time during the financial year. The deduction amount varies based on the severity of the disability:
It is important to note that Non-Resident Indians ( NRIs ) are not eligible to claim this deduction.
Under Section 80U of the Income Tax Act, individuals with a certified disability of at least 40% are entitled to a tax deduction of Rs. 75,000 on their taxable income. This provision aims to provide financial relief to those who face daily challenges due to their disabilities.
For individuals suffering from severe disabilities, defined as 80% disability or more, the Income Tax statute allows a higher deduction. These individuals can claim a deduction of up to Rs. 1.25 lakh. This increased deduction reflects the greater challenges and expenses that severely disabled individuals may encounter.
To claim the 80U deduction, individuals must first obtain a medical certificate from a recognized medical authority certifying their disability. This certificate should be in the prescribed format which is Form 10-IA. The income taxpayer can download this form from the Income Tax India website. Keep a copy of this certificate for future reference and submissions. Although it is not required to attach any documents to income tax returns at the time of filing, it’s good to keep the certificate and medical records for verification purposes.
The 80U certificate can only be issued by certain medical authorities. These are a civil surgeon or Chief Medical Officer ( CMO ) of a government hospital, a neurologist with MD in Neurology or a pediatric neurologist for children cases. Each of these medical professionals can issue the disability certificate in the prescribed format to make the claimant eligible for the tax deduction.
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