Section 80U, part of Chapter VI A, offers deductions for disabled individuals, aiming to lower tax burdens by reducing taxable income.
Section 80U offers a flat tax deduction to specially-abled individuals. You can claim these deductions based on the severity of the disability, irrespective of the taxable amount.
You must fulfil the following conditions to claim the deductions under Section 80U:
Taxpayer must be a resident of India and an individual
He/she must be suffering from a disability of at least 40%
Disability must be certified by government-recognised medical authorities
The definition of disability is based on Section 2(t) of the Persons with Disability (Protection of Rights, Full Participation, and Equal Opportunities) Act, 1955.
Persons with the following disabilities mentioned in the National Trust Act, 1999, can claim a deduction under 80U:
Autism: Characterised by uneven skill development and impaired communication abilities
Cerebral Palsy: Involves challenges with posture, motor control, or prenatal brain injuries
Multiple Disabilities: Encompasses various impairments listed in Section 2(i) of the PwD Act
Severe Disability: Defined as having 80% or more of one or multiple disabilities
Here's a table showing Section 80U deductions for individuals with various disabilities:
Category |
Deduction Permitted |
Disabled resident individual with 40% disability |
₹75,000 |
Severely disabled resident individual with 80% disability |
₹1.25 Lakhs |
Section 80U previously allowed deductions of ₹50,000 for disabilities and ₹1,00,000 for severe disabilities until FY 2015-16. Post-2015, these were raised to ₹75,000 and ₹1,25,000 respectively.
Frequently Asked Questions
What are the diseases considered for tax deductions under section 80U?
There are several disabilities that qualify for deductions under 80U. These include low vision, blindness, leprosy-cured, locomotor disability, mental illness, and hearing impairments.
What is the deduction amount u/s 80U of the Income Tax Act, 1961?
The deduction amount permitted to a disabled individual with at least 40% disability is ₹75,000. On the other hand, the amount of tax deduction permitted to a severely disabled resident individual with at least 80% disability is ₹1.25 Lakhs.
Can the deductions under sections 80DD and 80U be claimed simultaneously?
No, the tax deductions under sections 80U and 80DD cannot be claimed simultaneously.
What are the documents required to be submitted to claim the tax deductions under section 80U?
You must have a medical certificate from a recognised institution to claim tax deductions under Section 80U.
When did the new deduction limits under section 80U come into effect?
The new deduction limits came into effect in the financial year 2015-16.
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