Deduction U/s.

80U for disabled persons

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CA Sandeep Kanoi

Deduction Under Section 80U of Income Tax Act, 1961 for disabled persons

The Income Tax Act, 1961 provides deduction u/s. 80U in pursuance of which an individual
(Indian citizen and foreign national) who is resident of India, and who suffers from not less
than 40 per cent of any disability is eligible for deduction to the extent of Rs. 75,000/- and
in case of severe disability to the extent of Rs. 125,000/-.

For availing deduction u/s. 80U, the assessee needs to fulfill certain legal formalities like he
has to obtain a certificate from medical authority constituted by either the Central or the
State Government, along with the Return of Income for the year for which the deduction is
claimed. The intricate details of Section 80U is explained below in question answer form.

Q.1 What is the main difference between Deduction u/s. 80U & Section 80DD?

Ans. 80DD deduction is in case of the dependent of the employee whereas 80U deduction
is in case of the employee himself.

Q.2 Do deduction amount U/s. 80U dependent on amount of Expenditure?

Ans. This deduction amount is a lump-sum one, irrespective of how much you spend on
medical treatment.

Deduction could be claimed even for the year in which the certificate expires. Beyond this
year, no deduction could be obtained till the certificate is renewed or a new one is obtained.

Q.3 Deduction u/s. 80U is allowed to whom?

Ans. 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.

Q.4 What Documents are required to claim deduction Under Section 80U?

Ans. To avail a deduction under Section 80U, no bills or receipts are required. What is
required is a valid certificate from a medical authority certifying the disability. Separate
forms need to be filled for mental illnesses and all other disabilities. For illnesses such as
autism or cerebral palsy form number 10-IA additionally needs to be filled.

Q.5 Which are the medical Authorities who can certify Under Section 80U?

Ans. The medical authorities who are deemed to certify are:

– A Neurologist with an MD in Neurology.

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– For children, a Paediatric Neurologist having an equivalent degree.

– A Civil Surgeon or Chief Medical Officer (CMO) of a government hospital.

Q.6 What is meant by “Disability”?

Ans. “Person with disability” means a person suffering from not less than forty per cent of
any disability as certified by a medical authority;

The disabilities are those which are specified in “The Persons with Disability (Equal
Opportunities, Protection of Rights and Full Participation) Act, 1995”.

“Disability” means-

(I) Blindness refers to a condition where a person suffers from any of the following
conditions, namely:-

(i) Total absence of sight. or

(ii) Visual acuity not exceeding 6160 or 201200 (snellen) in the better eye with correcting
lenses; or

(iii) Limitation of the field of vision subtending an angle of 20 degree or worse;

(II) Low vision – “Person with low vision” means a person with impairment of visual
functioning even after treatment or standard refractive correction but who uses or is
potentially capable of using vision for the planning or execution of a task with appropriate
assistive device;

(III) Leprosy-cured- “Leprosy cured person” means any person who has been cured of
leprosy but is suffering from-

(i) Loss of sensation in hands or feet as well as loss of sensation and paresis in the eye
and eye-lid but with no manifest deformity;

(ii) Manifest deformity and paresis; but having sufficient mobility in their hands and feet to
enable them to engage in normal economic activity;

(iii) Extreme physical deformity as well as advanced age which prevents him from
undertaking any gainful occupation, and the expression “leprosy cured” shall be construed
accordingly;

(IV) Hearing impairment- Hearing impairment” means loss of sixty decibels or more in the
better ear in the conversational range of’ frequencies;

(V) Loco motor disability- “Loco motor disability” means disability of the bones, joints
muscles leading to substantial restriction of the movement of the limbs or any form of
cerebral palsy,

(VI) Mental retardation- “Mental retardation” means a condition of arrested or incomplete

development of mind of a person which is specially characterized by sub normality of
intelligence;
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(VII) Mental illness– “Mental illness” means any mental disorder other than mental
retardation;

Q.7 What is by “Severe Disability”?

Ans. Severe Disability is described as a person with eighty per cent or more of one or more
aforementioned disabilities.

The benefit of deduction under this section has also been extended to persons suffering
from autism, cerebral palsy and multiple disabilities.

Q.8 What is meant by “medical authority”?

Ans. Medical Authority means any hospital or institution specified in Persons with
Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 by
notification by the appropriate Government;

Q.9 What is meant by “appropriate government”?

Ans. “Appropriate Government” means,

i. the Central Government in relation to the Central Government or any establishment

wholly or substantially financed by that Government, or a Cantonment Board constituted
under the Cantonment Act, 1924, the Central Government;

ii. the State Government in relation to a State Government or any establishment wholly or
substantially financed by that Government, or any local authority, other than a Cantonment
Board,;

iii. the Central Government in respect of the Central Coordination Committee and the
Central Executive Committee,;

iv. the State Government in respect of the State Coordination Committee and the State
Executive Committee,;

Q.10 What is the amount of deduction available under section 80U?

Ans. For normal disability, assessee can claim deduction of Rs. 50,000 (enhanced to Rs
75000/- from A.Y 2016-17) while assessee with Severe Disability can claim deduction of
Rs.100,000/-(enhanced to Rs 1,25,000/- from A.Y 2016-17)

Q.11 What is the procedure Involved to claim deduction under this section?

Ans. The assessee claiming a deduction under this section shall furnish a copy of the
certificate issued by the medical authority in the form and manner, as may be prescribed,
along with the return of income under section 139, in respect of the assessment year for
which the deduction is claimed.

Where the condition of disability requires reassessment, a fresh certificate from the
medical authority shall have to be obtained after the expiry of the period mentioned on the
original certificate in order to continue to claim the deduction.

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