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Deductions under section 80U of Income Tax Act

deductions under section 80U

Section 80U and 80DDB provide tax benefits to individuals and their family members with disabilities. An individual suffering from disability himself gets tax benefit under section 80U while an individual gets tax benefits under section 80DDB if any dependent family member of the individual is suffering from a disability.

Eligibility

Tax benefit is available to any resident individual who is certified as “a person with disability” by the “medical authority”.

Deduction limit

For deduction under section 80U, individuals or persons with disability are categorized into two types:

  • Person with disability: A person with disability means the person is suffering from at least 40% of a disability. If an individual has at least 40% of a disability then he is eligible for a deduction of Rs. 75,000.
  • Person with severe disability: A person with disability means the person who is suffering from at least 80% of a disability. If an individual has severe disability (i.e., 80% or more of a disability) then he is eligible for a deduction of Rs. 1,25,000.

 

Category Deduction allowed
Disabled person (40% disability) Rs. 75,000
Severely disabled person (80% disability) Rs. 1,25,000

Who is a medical authority?

The following kinds of medical authorities can certify a person to be disabled:

  • A Civil Surgeon or Chief Medical Officer (CMO) of a government hospital.
  • A Neurologist with an MD in Neurology.
  • In case of children, a Paediatric Neurologist having an equivalent degree.

What is a disability?

Disabilities are defined in “The Persons with Disability (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995”. Persons suffering from any of the following kinds of disabilities as certified by a medical authority qualify for tax deduction u/s 80U.

  • Blindness
  • Low vision
  • Leprosy-cured
  • Hearing impairment
  • Loco motor disability
  • Mental retardation
  • Mental illness
  • Autism
  • Cerebral palsy

Frequently asked questions

What are the documents required to claim tax deduction under section 80U for my disability?
You don’t need to produce any document in order to claim income tax deduction under section 80U. However, you need to keep the certificate which your medical authority has issued to you by certifying your disability. For illness such as autism or cerebral palsy Form 10-IA additionally need to be filled up.

Who can certify my disability to claim the benefit of tax deduction under section 80U? 
A medical authority can certify your disability to claim income tax benefit or tax deduction under section 80U.

Just like section 80U, there are several other tax saving provisions covered under the Income Tax Act, but you might fail to claim the tax benefits in the absence of proper knowledge and procedures. So, you should take help of tax experts for this job. Saving taxes and filing income tax return accurately becomes very easy when you have professional help. This is where we come into the picture. You can either use our intuitive tax filing platform to easily file your tax return or let our tax experts file it for you. We have a team of in-house tax experts who can file your tax returns accurately while giving you maximum tax benefits.

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