1. What is 80U?
As per section 80U, If an individual is certified by the medical authority to be a person with a disability or disease then he/she is eligible to claim the tax deduction during the financial year. As prescribed in the income tax act1961, An individual must obtain a certificate to avail of the tax deduction and benefits under section 80U. This article is focused on section 80U.
2. Disabilities covered under section 80U
There are several disabilities mentioned in section 80U for individuals to avail of the tax deductions under section 80U. Some of the major disabilities are given below-
Blindness - This is a condition when an individual can not see anything because of the absence of sight. Those individuals have limited vision eyesight of 20 angles. These individuals are eligible to avail the tax benefits.
Locomotor disability -This is a disability that restricts movements of the body’s parts and any form of cerebral palsy because of the inability of bones and joints muscle.
Leprosy-cured - Those individuals who have recovered from this disease but due to the present effects, they are still going through it such as losing eyesight functioning, and hands movements along with feet can avail of the tax deductions under 80U.
Hearing impairment -Individual who suffers from are unable to hear the sound/frequencies of more than 60 decibels. These individuals fall under the category of section 80U.
Mental retardation - Individuals who have limited or incomplete mental development are considered under this disability.
Mental illness - Mental illness means a disorder related to mental health except for mental retardation.
Low vision -An individual with low vision who has impairment of visual functioning even after treatment or standard refractive modification but who uses or is capable of using eyesight to plan or execute a task with an appropriate device or gadget.
3. Who is eligible to claim the deduction under section 80U?
Under section 80U individual is certified by the medical authority to be a person with a disability or disease then he/she is eligible to claim the tax deduction during the financial year. The taxpayer should be going through at least 40% disabilities.
4. How to get a certificate under section 80U?
As per section 80U, It is mandatory to get a certified certificate of medical authority. A neurologist who is having a degree of Doctor of Medicine (MD) in Neurology (in the case of children, a Paediatric Neurologist has an equivalent degree) is A Civil Surgeon or Chief Medical Officer in a Government hospital.
5. Important Points related to section-80U
- Section 80U does not instruct a taxpayer to include any medical bill or other proof to claim the tax deductions.
- The taxpayer should get a certified certificate in the Form-10-IA medical authority.
- A taxpayer needs to submit the as well as Form-10-IA income tax return.
- A non-resident individual is not allowed to avail of the tax benefits under section-80U.
- A taxpayer can claim the tax deduction while filing the income tax return. In layman's language, mention the eligible amount under the head ‘Deduction under Chapter VIA’ and section 80U.
- If an individual is eligible for a reassessment under section 80u because of the disability. During the financial year, the disease or disability must be applicable as per section 80u.
6. Deduction limit under section 80u
If an individual has a disability or disease less than 80% but more than 40% then he/she is allowed to claim the deduction of 75,000. If an individual has a disability or disease of 80% or more than 80% then he/she is allowed to claim the deduction of 1,25,000.
7. What details are mentioned in the certificate?
Once you get a certificate, Make sure to go through certain mandatory details that should be in the certificate. Following are the important details-
- Patient’s name and age
- Name of the parents
- Name of the disease or disability
- Registration number and address
- What kind of disability patience is suffering from (progressive/improvable/non-progressive)
- Signature of the patient
- Name of the hospital or institution
Frequently Asked Questions
What is section 80U?
Section 80U enables individuals to avail of the tax deduction who are suffering from disabilities or diseases as per the income tax act 1961.
Is 80U available in the new tax regime?
No. Section 80U is not available in the new tax regime. A taxpayer can not claim tax deductions under section 80U as per the income tax act.
Difference between the sections 80U and 80DD?
Section 80DD provides the tax deductions for the family or kin with a member of disability but section 80U enables individuals to avail of the tax deduction who are suffering from disabilities or diseases himself as per the income tax act 1961.
Which diseases are covered under 80U?
There are numerous diseases or disabilities covered under section 80U such as blindness, leprosy, mental illness, locomotor disabilities, low vision, etc.
Is Section 80U a part of Section 80C?
No. Section 80U is not a component of section 80C.
How much amount of deduction is entitled under Section 80U?
People with disabilities can avail of the maximum amount of deduction at 75,000. But those who are suffering from severe disabilities can avail of the maximum amount of deduction is ₹1,25,000 under Section 80U.
Can I claim both 80DD and 80U?
No. According to the rules of the income tax act, you can not claim sections 80DD and 80U simultaneously.
What is Section 80 D of income tax?
As per the income tax act, section 80D enables Individual and Hindu Undivided families (HUF) to claim a deduction from taxable income
Is an NRI allowed to claim deduction under section 80u?
No. As per the income tax act, a non-resident Indian is not allowed to avail of the tax benefits under section 80u.
Can 80U be claimed for dependents?
No. A taxpayer is not allowed to claim a deduction under section80u.