Introduction:

Certain sections of the Income Tax Act in India offer tax benefits to individuals if they or any of their family members are experiencing specific disabilities.

Section 80u Deduction provides tax benefits for individuals experiencing disabilities, whereas Section 80DD offers tax benefits for dependent family members with disabilities. This article focuses on exploring the tax advantages offered under Section 80U.

Disabilities covered Under Section 80u Deduction

An individual residing in the country who has been officially certified as having a disability by medical authorities is eligible to claim tax benefits under Section 80u Deduction. According to this section, a person with a disability is defined as someone with a minimum of 40 percent disability as certified by medical authorities.

The section also outlines a definition for severe disability, indicating a condition where the disability is 80 percent or higher. This classification encompasses multiple disabilities, autism, and cerebral palsy as well.

A disability can be any of the following:

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

Certification Issuing Authority under Section 80U:

The eligible medical authorities for issuing a disability certificate can include any of the following:

• A civil surgeon employed in a government hospital.
• A pediatric neurologist with an MD (Doctor of Medicine) degree in Neurology, particularly for children with disabilities.
• A neurologist holding an MD (Doctor of Medicine) degree in Neurology.
• The Chief Medical Officer at a government hospital

Requirements to Claim Deduction Under Section 80u:

• No additional documentation is required beyond the disability certificate issued by a recognized medical authority on Form 10-IA. Deduction Under Section 80u Deduction There is no need to provide invoices for treatment expenses or other related costs.

• Certificates can be obtained from medical authorities, who may be either a neurologist with a Doctor of Medicine (MD) degree in Neurology (for children, a pediatric neurologist with a comparable degree), or a civil surgeon, or the Chief Medical Officer at a government hospital.

• To claim benefits under this section, individuals must submit a medical certificate indicating the disability along with their income tax returns as per Section 139 for the relevant Assessment Year (AY). If the disability assessment certificate has expired, deductions can still be claimed in the year of its expiration. However, a fresh certificate will be necessary from the following year to continue claiming benefits under Section 80U.

• If the disability is temporary and requires reassessment after a certain period, the validity of the certificate begins from the assessment year corresponding to the financial year of its issuance and ends during the assessment year corresponding to the financial year when the certificate expires.

Comparing Section 80U and Section 80DD:

• Section 80DD offers tax deductions to family members and relatives of the taxpayer with a disability, while Section 80U provides deductions directly to the individual taxpayer with a disability.

• Section 80DD applies when a taxpayer pays a specified insurance premium to care for their dependent disabled person. Under this section, the deduction limits mirror those of Section 80U. In this context, “dependent” Tax Deduction Under Section 80u encompasses the assessee’s siblings, parents, spouse, children, or a member of a Hindu Unified Family.

Conclusion:

Deductions serve to mitigate tax liability, with expenditure-specific deductions being encouraged by the Government of India through tax relief on investments such as those outlined in Section 80u Deduction. Other deductions are granted upon meeting specific conditions to alleviate the tax burden, including those provided under section 80U.It’s crucial for disabled taxpayers to grasp the deductions outlined in Section 80U and leverage them to claim tax benefits on their taxable income.