Income Tax efiling in India for FY 2023-24 (AY 2024-25)
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File ITR Now Hire eCA NowSection 80U Income Tax Deduction for the Disabled Persons
What is Section 80U of the Income Tax?
Section 80U Income Tax is the deductible for a person with a disability. This section provides a minimum deduction for a person with a disability on the basis of the severity of the disability regardless of the cost.
The requirement to claim this hold is
- Taxpayers must be a citizen.
- Must have at least 40% disability.
- Disabilities must also be approved by a recognized medical authority.
Who can claim this deduction?
Citizens who at any time during the financial year have been authorized by the medical authorities to be disabled can apply for this deduction only for themselves. The condition of residence determines the suitability of this arrest. Therefore, an Indian citizen or foreign national may both seek this arrest. NRIs do not qualify for extraction. If a taxpayer wants to be deducted under Section 80U, he or she will not be able to claim another deduction under Section 80DD. .
What is the amount of deduction available u/s 80U?
As mentioned earlier, the catch rate depends on the severity of the disability. Therefore, taxpayers with a disability of less than 80% receive a deduction of Rs.75,000 and taxpayers with a severe disability of 80% or more receive a deduction of Rs.1,25,000 lakhs. Deductions are fixed amounts allowed as deductions from taxable income.
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If the taxpayer's total income is INR 10 lakhs and he is 60% disabled, he can receive an INR 75,000 deduction which would reduce his total income to INR 9.25 lakhs. Tax debt calculations will also change. Here's how -
| Except for Section 80U > | By Section 80U drawings |
|---|---|
| Total Revenue / Taxes - INR 10 lakhs | Total Income - INR 10 lakhs Income Tax Income - INR 9.25 lakhs |
| Income tax on income between INR 2.5 lakhs and INR 5 lakhs - 5% of INR 2.5 lakhs = INR 12,500 + Income tax between INR 5 lakhs and INR 10 lakhs - 20% of INR 5 lakhs = INR 1 lakh | Income tax on income between INR 2.5 lakhs and INR 5 lakhs - 5% of INR 2.5 lakhs = INR 12,500 + Income tax between INR 5 lakhs and INR 9.25 lakhs - 20% of INR 4.25 lakhs = INR 85,000 |
| Total Tax Payment = INR 1,12,500 | Total Tax Payment = INR 97,500 |
Thus, with the deduction earned under Section 80U, the taxpayer can save INR 15,000 taxes in the above case.
Which disabilities are covered under Section 80U?
Section 80U covers the following types of disabilities -
- Locomotor disability
- Low vision
- Blindness
- Leprosy – cured
- Mental retardation
- Hearing impairment
- Autism
- Cerebral palsy
- Multiple disabilities
- Mental illness
A taxpayer will be considered a person who is not severely disabled if he or she has a disability of 40% or more but less than 80%. However, if the taxpayer is 80% or more disabled, that can be called a serious disability. The deduction limit varies depending on the severity of the existing disability.
How to claim deduction under Section 80U?
The person claiming the deduction is required to submit a copy of the certificate issued by the medical authorities in the prescribed form and the ITR. As, in fact, no document is required to be attached to the ITR, it is advisable to keep the document in hand
.Please note that a medical certificate must be submitted confirming the disability. The certificate must be prepared by a recognized medical officer in the prescribed manner contained in Form 10 –IA. The form can be found on the Indian Tax Website - Therefore, it means that if you take a deduction under this section, keep a certificate that you can take from an Authorized Physician. Also, it is recommended that you keep medical records and medical records safe if the revenue department requests the same in the future. The medical certificate must contain details of the taxpayer's disability. Disability certificate has specified functionality. If the validity of a certificate expires in any financial year, deductions for that financial year may be claimed using an expired certificate. However, from the next financial year a new compliance certificate must be obtained under Section 80U next year.
Which medical authority can issue certificate u/s 80U?
The medical authorities responsible for issuing a disability certificate may be any of the following -
- Neurologist with a MD (Doctor of Medicine) degree in Neurology
- A surgeon at a public hospital
- Chief Medical Officer at Government Hospital
- Pediatric Psychiatrist with MD (Doctor of Medicine) degree in Neurology for children with disabilities
Conclusion
Section 80U and Section 80DD are often mixed together because both of these categories allow for deductions for people with disabilities. However, the main difference between these sections is that although Section 80U provides deductions for the disabled taxpayer, Section 80DD allows for deductions if the dependent taxpayer suffers from a disability. In the case of one person, the dependent may be a spouse, children, parents or siblings and in the case of HUF, a member of the HUF. In addition, a deduction under Section 80DD is permitted if the taxpayer has the costs of treatment, medication, training or rehabilitation. Therefore, both categories have different meanings and tax implications and should not be confused with one another. Disabled taxpayers must understand the deduction provisions under Section 80U and use these provisions to claim tax benefits on their taxable income.
Frequently asked questions
Can a NRI avail deduction under Section 80U?
No, fees deducted under Section 80U are only allowed for Indian citizens.
Can I claim a deduction under both Sections 80U and Section 80DD?
No, if a taxpayer wants a deduction under Section 80U, he or she may not apply for a deduction under Section 80DD even though the amount deducted under this category is not for the disabled. Similarly, if a taxpayer wants a deduction under Section 80DD, he or she may not claim further deductions under Section 80U.
Would the medical reports or bills required to be submitted for availing deduction under Section 80U?
No, no medical bills or reports will be required to deduct money under Section 80U. However, a disability certificate issued by an accredited physician will be required.
Is the deduction amount based on the actual expenses incurred?
No, deductions are allowed at a lower cost regardless of the costs incurred in the treatment or care of the disability.
Can tax-payers claiming deduction under Section 80U also claim deductions under other eligible sections?
Yes, taxpayers who want to deduct under Section 80U, other than Section 80DD, may require deductions under other categories such as Section 80C, Section 80D, Section 80E, etc.
Krishna Gopal Varshney
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