Deduction under section 80U of Income Tax act can be claimed by an Individual who is a resident in India for the financial year relevant to the assessment year in which the person is taking the benefit. Deduction under section 80U can be claimed in addition to all other income tax deductions available under IT Act unless and until is has been specifically disallowed.
Who can take benefit – Section 80U
A salaried person or a self employed person or any other individual can claim income tax deduction under section 80U for his disability if such individual is resident in India during the financial year.
Deduction under section 80U is not available to the individual who is non resident in India during the financial year.
Definition of Disability – Section 80U
The taxpayer will be covered under section 80U of IT act if such taxpayer suffers 40% or more than 40% of any of the following disability;
- low vision;
- hearing impairment;
- locomotor disability;
- mental retardation;
- mental illness
The taxpayer has to keep a copy of the certificate issued by medical authority and such certificate has to be renewed in timely manner to keep claiming the income tax benefit under section 80U of IT act.
You are not required to produce this certificate along with the income tax return. In case it is asked by the assessing officer then the same has to be produced before him. Earlier you need to produce the certificate along with your income tax return but now this provision has been removed.
Quantum of Deduction – Section 80U
A fixed deduction of Rs. 50, 000 is available for the taxpayer if all of the other conditions mentioned under section 80U is satisfied.
A higher deduction of Rs. 1, 00,000 can be claimed under section 80U if the taxpayer has severe disability. Sever disability means having any of the above disability of 80% or above.
Frequently Asked Questions on Section 80U – Tax Benefit for a Person with Disability
What are the documents required to claim tax deduction under section 80U for my disability?
You are not required to produce any document to claim income tax deduction under section 80U of IT act. You need to keep the certificate which your medical authority has issued to you by certifying your disability. For illness such as autism or cerebral palsy form 10-IA additionally need to be filled up.
Who CAN certify my disability to claim the benefit of tax deduction under section 80U?
Following medical authority persons can certify your disability to claim income tax benefit or tax deduction under section 80U;
- A civil surgeon or the chief medical officer of a government hospital
- A neurologist with an MD in neurology
- A pediatric neurologist having an equivalent degree.