Navigating Section 80U: How Can Disabled Residents in India Claim Tax Deductions?

The Income Tax Act, 1961 provides a deduction under section 80 for individuals (Indian citizens and foreign nationals) who are residents of India and suffer from not less than 40% disability. The deduction is up to Rs. 50,000 for disability and Rs. 100,000 for severe disability. To claim this deduction, the assessee must fulfill certain legal formalities, including obtaining a certificate from a medical authority constituted by either the Central or State Government, along with the Income Tax Return for the relevant year.

Q. Deduction under section 80U is allowed to whom?

Ans. Deduction under section 80U is allowed to any person who is a resident (Indian citizen or foreign national) and is certified by a medical authority to be a person with disability or severe disability at any time during the previous year.

Q. What is meant by "Disability"?

Ans. "Person with disability" refers to an individual suffering from not less than forty per cent of any disability as certified by a medical authority. The disabilities are those specified in "The Persons with Disability (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995."

"Disability" includes:

- Blindness
- Low vision
- Leprosy-cured
- Hearing impairment
- Locomotor disability
- Mental retardation
- Mental illness

Q. What is meant by "Severe Disability"?

Ans. Severe Disability is described as a person with eighty per cent or more of one or more of the aforementioned disabilities. The deduction also applies to persons suffering from autism, cerebral palsy, and multiple disabilities.

Q. What is meant by "medical authority"?

Ans. Medical Authority refers to any hospital or institution specified in the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 by notification by the appropriate Government.

Q. What is the amount of deduction available under section 80U?

Ans. An assessee with normal disability can claim a deduction of Rs. 50,000, while an assessee with Severe Disability can claim a deduction of Rs. 100,000.

Q. What is the procedure involved to claim a deduction under this section?

Ans. The assessee claiming a deduction under this section must provide a copy of the certificate issued by the medical authority in the prescribed form along with the Income Tax Return under section 139 for the relevant assessment year. If the disability condition requires reassessment, a fresh certificate must be obtained after the expiry of the period mentioned on the original certificate to continue claiming the deduction.

In case of any queries, please feel free to reach out.

Deduction under section 80U of the Income Tax Act, 1961 is allowed to any resident individual (Indian citizen or foreign national) certified by a medical authority to be a person with disability or severe disability. The disabilities are defined under "The Persons with Disability (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995." To claim the deduction, the individual must obtain a certificate from a medical authority and submit it along with the Income Tax Return for the relevant year. The deduction amounts are Rs. 50,000 for normal disability and Rs. 100,000 for severe disability. It is crucial to follow the prescribed procedure for claiming the deduction, including providing the necessary documentation and obtaining reassessment if required. Feel free to seek further clarification if needed.