Section 80U Deduction for Disabled Persons

By | November 11, 2014
Persons suffering from permanent physical    Disability and includes Autism, Cerebral Palsy, Multiple Disability, Person with Disability and Severe Disability. It should be certified by the     medical authority.

Rs.75, 000 if disability is over 40% and Rs.1,00,000/- if disability is over 80%.

1) Income Tax Act, Section 80U – Deduction in case of person with disability
Who can claim the benefit: Individual who is resident during previous year and is certified by Medical
Authority to be a person with Disability.
Deduction allowed: In case of Person with Disability (at least 40%) Rs 50,000 /- is allowed. In case of
Person with Severe Disability (80% of one or more disabilities) Rs. 1,00,000/- is allowed.
Important Definitions:
A) “disability” shall have the meaning assigned to it in clause (i) of section 2 of the Persons with
Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996),
and includes “autism”, “cerebral palsy” and “multiple disabilities” referred to in clauses (a), (c) and
(h) of section 2 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental
Retardation and Multiple Disabilities Act, 1999 (44 of 1999)
B) “medical authority” means the medical authority as referred to in clause (p) of section 2 of the
Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act,
1995 (1 of 1996), or such other medical authority as may, by notification, be specified by the
Central Government for certifying “autism”, “cerebral palsy”, “multiple disabilities”, “person with
disability” and “severe disability” referred to in clauses (a), (c), (h), (j) and (o) of section 2 of the
National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and
Multiple Disabilities Act, 1999 (44 of 1999)
C) “person with disability” means a person referred to in clause (t) of section 2 of the Persons with
Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996),
or clause (j) of section 2 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy,
Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999)
D) “person with severe disability” means—(i) a person with eighty per cent or more of one or more
disabilities, as referred to in sub-section (4) of section 56 of the Persons with Disabilities (Equal
Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996)
Section 80U tax deductions are over and above other deductions and are meant for people who suffer from disabilities.

This section can only be utilized if you suffer from the disability yourself and is not applicable for parents, spouse or any other dependents.

They have two classes of disabilities – one where the person suffers from a disability and the other where a person suffers from severe disability.

You need proof from a medical practitioner to decide what kind of disability you suffer from, and a person from disability will get a deduction of up to Rs. 50,000 from his taxable income while a person who suffers from severe disability can get a deduction of Rs. 1,00,000.

Tax Worry has a list of what constitutes disability, and what constitutes severe disability on their site.

You will also find the forms that need to be downloaded on that link.

I can’t quite remember if they propose to have this deduction or any other form of it post the Direct Tax Code, so I’ll update that aspect once I know more about it.

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