A resident individual suffering from permanent physical disability or mental retardation including blindness, loss of voice, autism, cerebral palsy and multiple disability as per rule 11D is eligible to get tax deduction under section 80U of Income tax act 1961.
Do not get confused between section 80U and 80DD. A resident individual suffering from disability himself gets tax deduction under section 80U. If any dependent family member of an individual is suffering from a disability, tax deduction under section 80DD can be taken.
As per section 80U of Income tax act 1961, a foreign citizen who is resident in India during the financial year can also claim this income tax benefit for his physical disability.
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 Income Tax act 1961 if he or she suffers 40% or more of one or more physical disability any of the following;
- 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 deduction under section 80U.
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.
Quantum of tax deduction under section 80U
A fixed income tax deduction of Rs. 75,000 is allowed under section 80U if the assessee is suffering from any disability. If the person has severe disability, the deduction allowed is Rs. 125000 instead of Rs. 75000.
Severe disability means having any of the above disability of 80% or above.
Assessee is not required to submit any medical bill, certificate or any other receipt at the time of filing income tax return.
However, a copy of the certificate issued by medical authority has to be kept by the assessee. If assessee is employed, then such certificate has to be submitted to the employer for TDS calculation.
Section 80U talks about fixed or flat deduction irrespective of assessee’s actual expenditure.
Table showing tax deduction U/S 80U for the financial year 2022-23 (Assessment year 2023-24)
|Category||Flat Tax deduction allowed for financial year 2022-23|
|Resident individual is suffering from 40% or more of one or more disability||Rs. 75,000|
|Severe disability – resident individual suffering from 80% or more of one or more disability.||Rs. 1,25,000|
Deduction under section 80U is not available to NRIs. However, a foreign citizen who is resident in India can take this benefit.
Procedure to get tax deduction under section 80U
To get income tax deduction under section 80U, the assessee is required to furnish a copy of the certificate issued by the Medical Authority, in form 10-IA.
After the expiry of the medical certificate assessee is required to issue a fresh certificate in order to continue to claim tax deduction.
As per income tax law, following kind of medical authority can certify a person to be disabled;
- A Civil Surgeon or Chief Medical Officer (CMO) of a government hospital.
- A Neurologist with an MD in Neurology.
- In case of children, a Paediatric Neurologist having an equivalent degree.
Disabilities, medical authority, person with severe disability are defined in “The Persons with Disability (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995” .Persons suffering from any of the following kinds of disabilities as certified by a medical authority qualify for tax deduction u/s 80U.
- Low vision
- Hearing impairment
- Locomotor disability
- Mental retardation
- Mental illness
- Cerebral palsy
FAQs on tax deduction for a Physically Disabled Person-Section 80U
What are the documents required to claim income tax deduction under section 80U for my disability?
You are not required to produce any document to claim income tax deduction under section 80U.
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 income 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.