Section 80u

What is the Quantum of Deduction under Section 80U?

A deduction of Rs 75000 is allowed for persons with disabilities whereas a deduction of Rs 1, 25,000 can be availed by persons with severe disabilities.

What are the Requirements to claim Deduction under Section 80U?

No other documentation other than a certificate from a recognized medical authority, in Form 10A, is required. There is no requirement of producing any bills for costs incurred in pursuance of treatment or such other expenses.

For making any claim under this section, a medical certificate is required to be submitted along with the income tax return as per section 139 for the relevant AY. In case the disability certificate expires during the year, one would still be able to claim for the year in which it expires. However, a fresh certificate would be required from the succeeding year to claim the benefits under Section 80U.

The recognized medical authority for this section could either be a neurologist having a degree in medicine (MD) in neurology or a civil surgeon or Chief Medical Officer in a government hospital.

If the disability is temporary and requires reassessment after a certain period, then the validity starts from the assessment year relevant to the financial year in which it was issued and ends during the assessment year relevant to the previous year in which the certificate expires.

What is the difference between Section 80U and Section 80DD?

Section 80DD provides tax deductions to the family members of a taxpayer, whereas Section 80U provides deductions to the taxpayer himself with a disability.

Section 80DD is applicable if a taxpayer deposits a specified amount as an insurance premium for taking care of a disabled dependent family member. Section 80U also provides similar deduction limits and dependents under this section shall include the siblings, parents, spouse, children, or any member of a Hindu Undivided Family (HUF), of which the assessee is a member.

Also for persons opting for the new regime, none of the tax deductions stated above or under the provisions of the act shall be available.

What should be mentioned in the Certificate?

• Name and age of the patient
• Name of the parent
• Address
• Description of the ailment
• Whether the disability is progressive/non-progressive
• Qualification of the specialist issuing the prescription
• Name and address of the institution or government hospital
• Signature of the patient and the specialist

How are disabilities categorized under the Section?

• Low vision: Vision impairment that can’t be corrected by surgery but the patients are still able to use their vision with the help of devices
• Blindness: It is defined as the complete absence of sight or when the field of vision gets limited by an angle of 20 degrees or the visual accuracy is lesser than 6160 after the use of corrective lenses.
• Hearing impairment: Hearing power loss of a minimum of 60 decibels.
• Leprosy cured: Those individuals that have been cured of leprosy but the sensations in feet and hands are lost or any older aged person with extreme deformities that obstructs them from engaging in any beneficial occupation.
• Mental Retardation: People who have incomplete development of mental capacities resulting in low intelligence levels.
• Locomotor disability: Individuals who get affected with limitations of movements due to disability of joint muscles or bones.
• Mental Illness: Mental disorders not related to retarded mental health.

Section 80U and Section 80DDB

Section 80DDB also offers a tax deduction to taxpayers who are incurring expenses for medical treatment of specified diseases. This section also is inserted with a cause to help the patients avail a deduction since the expenses incurred can be pinching the pockets of the common man. The government has taken these measures for the betterment of the public at large.

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