The Income Tax Act offers certain privileges in form of tax benefits to the individuals in case the person or their family members suffer certain disabilities under section 80U of the Income Tax Act. This deduction under Section 80U can be claimed after submitting the medical certificate from an authorised medical authority.
What is Section 80U of Income Tax Act?
As per Section 80U of the Income Tax Act, 1961 certain provisions are formulated for the citizens of India in case the individual suffers from certain disability. For individual with disabilities, a maximum tax deduction of up to ₹75,000 is allowed and for individuals with severe disabilities, the tax deduction limit is ₹1,25,000.
What Type of Disabilities are Included as per Section 80U of the Income Tax Act?
As per the Person with Disability (Equal Opportunities, Protection of Rights and Full) Act, 1955, an individual who have 40% disability certified by the medical authority is defined as disabled. The medical authorities includes- Paediatric Neurologist, Civil Surgeon, MD (Neurology), CMO at a government hospital and so on.
Although, there are 7 types of approved disabilities categorised by the government are given below-
- Minimal Vision
- Blindness
- Leprosy Cured
- Loco Motor Disability
- Mental Retardation
- Mental Illness
- Hearing Impairment
How to Claim Deductions under Section 80U of the Income Tax Act?
In order to claim Section 80U deduction, an individual needs to have a medical certificate declaring about the disability and other documents as required while reporting to the IT Department.
Deduction Limit Under Section 80U of the Income Tax Act
Individuals can avail tax deductions under section 80U in two ways-
- Person with Disability
Any individual having 40% disability can claim for tax deduction up to ₹75,000
- Person with Severe Disability
Under this, any individual having 80% or more disability can avail tax deductions of up to ₹1,25,000
Documents Required to Claim Deductions Under Section 80U of the Income Tax Act
Individuals are required to furnish below given documents to avail the tax benefits under section 80U-
- Medical Certificate declaring disability from a medical authority
- As per section 139 of the Income Tax Act, Form 10-IA for persons with severe disability
Section 80U of the Income Tax Act- FAQs
The deduction limit ranges from ₹75,000 to ₹1,25,000 depending upon the severity of disability.
At the time of filing Income Tax Return, individuals can claim the deductions under section 80U.
Yes, autism, cerebral palsy and multiple disabilities are considered as severe disability.
