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Section 80u

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Introduction

The Income Tax Act of India offers several provisions to support people with disabilities, especially tax deductions under Section 80U. Citizens who meet the government's criteria for at least 40% disability may claim a tax deduction through Section 80U of the Income Tax Act.

The act provides guidelines and standards for determining eligibility and claiming the deduction. In this blog, we will explore the various aspects of Section 80U deduction, including eligibility criteria, tax benefits, and the process of claiming deductions.

What is Disability Definition Under Section 80U?

Section 80U of the Income Tax Act provides tax benefits to individuals with disabilities. However, to qualify for these benefits, an individual must meet specific criteria defining their disability.

The criteria for specifying disability under Section 80U deduction are based on the Persons with Disability Act of 1995 issued by the government of India. This section explores the various disabilities recognised under Section 80U and their definitions.

The following table summarises the different disabilities recognised under Section 80U deduction and their meanings.

Disability Type Definition
Blindness Blindness is defined as losing total vision, having a field of vision restriction of 20 degrees or more, or having a visual acuity of less than 6/60 with corrective lenses.
Low Vision Applies to individuals with impaired vision who cannot be treated surgically but can still see with the help of various aids.
Leprosy Cured Those who have been cured of leprosy but still suffer from paralysis of the eyelids, hands, and feet. Additionally, people with severe physical disabilities and the elderly cannot perform any valuable work.
Hearing Impairment At least 60 decibels of hearing loss.
Mental Illnesses Those with subnormal intelligence levels due to incomplete or arrested development of mental capabilities.
Retardation An individual with a subnormal intelligence level who has either inadequate or stalled mental growth.
Locomotor Disability An individual with significant limitations in their range of motion caused by joints, muscles, or bones.

The law provides a separate definition for severe disability, distinct from the general disability category. Severe disability is characterised by an individual having 80% or more disabilities in the categories mentioned earlier. Additionally, severe disability encompasses multiple disabilities, including cerebral palsy and autism.

Who is Eligible for Section 80U?

Individuals who are residents and certified by a medical authority as having a disability may claim this deduction for themselves only. 

Note that eligibility for this deduction is contingent upon the individual's residence status. Non-residents are not entitled to claim this deduction.

Difference Between Section 80U and Section 80DD

Under Section 80DD of the Income Tax Act, family members and close relatives of a taxpayer with a disability are eligible for tax deductions. On the other hand, taxpayers with a disability are eligible for deductions under Section 80U. 

If a taxpayer pays a specified amount as an insurance premium to take care of a dependent disabled person, Section 80DD applies. The deduction limits under Section 80DD are the same as those for Section 80U; in this case, they can refer to any of the assessee's siblings, parents, spouse, children, or other members of a Hindu Unified Family (HUF).

How to Claim for a Deduction Under Section 80U?

To claim the deduction, individuals must possess a copy of the certificate issued by the medical authority as specified in the ITR. Usually, no additional documents are required to be attached to the ITR, but it is recommended that the certificate be kept easily accessible.

Documents Required to Claim Deduction

To claim the deduction under Section 80U, an individual must submit the medical certificate specifying the disability and their income tax returns as per Section 139 for the relevant Assessment Year. Even if the disability assessment certificate has expired, the individual may still claim such deductions in the expiry year. However, a fresh certificate would be required from the following year to continue claiming benefits.

The Medical Authorities that Can Issue Certificates Under Section 80U

Medical authorities that can issue a disability certificate include the following.

  • A neurologist with an MD degree
  • A civil surgeon at a government hospital
  • A government hospital's chief medical officer
  • Pediatric neurologist with an MD degree

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Frequently Asked Questions

The section allows for deductions to be claimed by individuals with disabilities ranging from 40% to 80%. An individual with a 44% disability falls within this range and may claim the deductions.

Yes, there has been a change in the deduction limits for disabled individuals under Section 80U of the Income Tax Act. The new deduction limits came into effect from the assessment year 2020-21.

There are seven different categories of disability. Low vision, mental retardation, locomotor disability, blindness, hearing impairment, leprosy cured, and mental illness are some of these conditions.

Yes, multiple disabilities, cerebral palsy, and autism are all classified as severe disabilities.

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