Section 80U of the Income Tax Act of India, 1961 provides a tax deduction to individual taxpayers who are suffering from a disability. To claim a deduction under Section 80U, the individual should be certified as a person with a disability by the medical authority. For people with disabilities, a maximum tax deduction of up to ₹75,000 is allowed and for people with severe disabilities, the deduction limit is ₹1,25,000. Here is a look at the details about Section 80U income tax deduction.
Only an Indian resident individual who is a certified person with a disability by respective medical authorities becomes eligible for the tax benefits of Section 80U. According to the Persons with Disability (Equal Opportunities, Protection of Rights and Full Participation) Act, 1955 a person with a disability is someone who has at least 40% disability certified by the medical authority.
Section 80U also defines what a severe disability is. A condition where the disability is 80% or above classifies as a severe disability. It also includes multiple disabilities, autism and cerebral palsy. People with impairment of at least 40% in the below ailments are considered as disabled:
Apart from the certificate of disability by recognised medical authorities in Form 10-IA, no other documentation is required to claim the tax benefits available under Section 80U of the Income Tax Act of India, 1961. You do not have to submit any bills or details of treatment done to claim the tax deduction.
The certificate of disability should be submitted together with the Income Tax Returns according to Section 139 for the relevant AY. If the certificate has expired, you would still be able to claim the deduction in the year of the expiry date. However, you will need a fresh certificate from the next year to claim tax benefits under 80U.
The maximum amount of deduction for people with disabilities is capped at ₹75,000. For people with severe disabilities, the maximum amount of deduction under Section 80U is ₹1,25,000.
The maximum amount of deduction depends on the disability of the individual. A person with a disability is eligible for a deduction up to ₹75,000 and those with severe disability can claim a deduction up to ₹1,25,000.
Yes, paralysis is covered under Section 80U of the Income Tax Act of India, 1961.
Yes, tax deductions under Section 80U are still applicable in the new tax regime. People with disabilities can avail these deductions while filing their ITR.