Deduction In Case Of Person With Disability Section 80U: According to Section 80U, a person who has any disability gets tax benefits. An individual can avail of these tax benefits if a person has at least 40% disability and certified by medical authorities.
According to Section 80DDB, an individual also receives tax benefits for any dependent member of the differently-abled family. Under this section, a tax benefit of ₹100,000 can be claimed for special ailments of senior citizens who are of 60 years of age or more.
Any resident individual with a disability is eligible (may be ordinarily resident or not ordinarily resident).
Under Section 80U, the amount of deduction is fixed for the individual irrespective of the amount of expenditure or the amount of deposited or paid as under:
- An individual with a disability of less than 80% but not less than 40% is entitled to a fixed deduction of ₹75,000.
- An individual with a disability or severe disability, i.e. 80% or more is entitled to a fixed deduction of ₹125,000.
The individual to claim deductions under this section requires a certificate issued by the medical authority. If specific disabilities require reassessment, then a fresh certificate is to be obtained from the medical authority. Form 10IA is to be filed for obtaining such a certificate. When the certificate is expiring in a year, the deduction can be availed for that year, but the certificate needs to be renewed for availing deduction in the next financial years.
Such certificate as issued by the medical authority is not required to be furnished while filing the income tax return. Still, it is only needed to be submitted if the Assessing Officer demands it. The medical authorities who can certify a person with disabilities are given below:
- A Chief Medical Officer (CMO) or a Civil Surgeon of a government hospital.
- A Neurologist with an MD or specialization in Neurology.
- In the case of children, a Pediatric Neurologist has an equivalent degree.
Disabilities include physically handicapped as well as persons with mental disorders. The illness which is covered under this section are as follows:
- Mental Illness
- Low Vision
- Locomotor Disability
- Hearing Impairment
- Mental Retardation
|Particulars||Normal Disability||Severe Disability|
|Income from salaries||500,000||500,000|
|Gross Total Income||500,000||500,000|
|Less: Deductions u/s 80U||75,000||125,000|
|Net Total Income||425,000||375,000|