The Income Tax Act, 1961 provides tax benefits to individuals if either they or any of their family members suffers from certain disabilities. Section 80U offers tax benefits if an individual suffers a disability.
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Eligibility criteria under Section 80U:
A resident individual suffering from disability himself gets tax deduction under section 80U. Deduction u/s. 80U is allowed to any person being a resident (Indian citizen or foreign national), who, at any time during the previous year, is certified by the medical authority to be a person with disability or severe disability.
For availing deduction under Section 80U, an individual should suffer from at least 40% disability, certified by the medical authorities. Section 80U has defined disability as one of the following:
- Low vision
- Hearing impairment
- Loco motor disability
- Mental retardation
- Mental illness
The section also provides a definition for a severe disability. Severe Disability is described as a person with eighty per cent or more of one or more aforementioned disabilities.
Quantum Of Tax deduction Under Section 80U:
A physically disabled individual suffering from blindness or mental retardation is eligible for tax deductions of up to Rs. 75,000 and Rs. 1,25,000 deduction for people with severe disability.
Difference between Deduction u/s. 80U & Section 80DD?
80DD deduction is in case of the dependent of the employee whereas 80U deduction is in case of the employee himself.
Dependent under Section 80DD implies any member of a Hindu Unified Family (HUF) or an individual’s siblings, parents, spouse or children.
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Note: This Post was last updated on January 3, 2021
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