Section 80U allows you to claim tax deduction if you suffer from Physical Disability. This section is only available for Indian Resident Individuals and not for NRI (Non Resident Indian) or HUF (Hindu Undivided Family). You can claim maximum Rs. 75,000 if your disability percentage is between 40% to 79% and maximum Rs. 1,25,000 if disability percentage if 80% or above. The individual must be certified as a person with disability by appropriate medical authority. In case any of your family member is certified as disable than you can claim tax deduction under Section 80DD to cover for expenses to take care of family member.
Let us understand Section 80U in more detail.
- What is Section 80U of Income Tax Act?
- Disability covered Under Section 80U
- Deduction Limit in Section 80U
- Documents required to claim Section 80U Tax Deduction
- Frequently Asked Questions
What is Section 80U of Income Tax Act?
- Section 80U of income tax act allows you to claim tax deduction if you are physically disabled
- You must be certified as a person with physical disability by appropriate medical authority
- Section 80U is different from Section 80DDB – where medical expenses occurred for specific disease is claimed
- Only Individuals can claim this deduction in Section 80U
- Also, you must be an Indian Resident to claim this deduction
- The appropriate medical authority can fill the Form 10-IA that can help you to claim Section 80U Tax Deduction
- Maximum limits that can be claimed is Rs. 75,000 and Rs. 1,25,000 based on your disability percentage
Let us now see the list of disability covered in this section.
Disability covered Under Section 80U
Below are the list of disabilities that can be covered under Section 80U:
- Low Vision
- Leprosy – cured
- Hearing Impairment
- Mental Retardation
- Locomotor Disability
- Mental Illness
- Cerebral Palsy
If any of the above disability is mentioned by medical authority with at least 40% disability percentage, you care eligible to claim this deduction to save income tax.
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Deduction Limit in Section 80U
Deductions limits in Section 80U depends on the percentage of disability:
- If your disability percentage is less than 40%, you don’t get any tax exemption
- If disability percentage is between 40% to 79%, you get maximum of Rs. 75,000 as tax deduction with old tax regime
- If disability percentage is 80% or above, you get maximum Rs. 1,25,000 as tax deduction with old tax regime
It is important to note that you don’t get 80U deduction with new tax regime.
Documents required to claim Section 80U Tax Deduction
There is no specific documents required to claim Section 80U deduction. You can simply get the Form 10-IA filled by the appropriate medical authority to claim this deduction.
You can provide this medical certificate while filing Income Tax Return (ITR), even in the financial year in which the certificate has expired. In the upcoming years, you need to submit fresh medical certificate, if previous certificate is expired.
Below is the medical certificate that needs to be filled:
Note that if your dependent family member is facing physical disability, than you need to claim Section 80DD (family member), instead of Section 80U (self).
So Section 80U of income tax act helps you to claim tax deduction if you are facing physical disability. You need to obtain a medical certificate by filling Form 10-IA mentioned above from the appropriate medical authority.
Only individuals and an Indian Resident can claim this deduction. NRI and HUF cannot claim this deduction. Maximum of Rs. 75,000 can be claimed in disability percentage is between 40% and 79% and Rs. 1,25,000 can be claimed if disability percentage is 80% or above.
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Frequently Asked Questions
What is covered under 80U?
If you face physical disability, than the expenses occurred to take care of yourself can be covered under Section 80U of income tax act, provided you have the medical certificate from appropriate medical authority that certifies you having physical disability of at least 40%.
List of physical disabilities covered in this section is mentioned above.
Can 80U and 80DDB be claimed together?
80U covers for the expenses occurring for mentioned list of disability, where as 80DDB covers for medical expenses occurred for treatment of specific diseases mentioned here. Since both, the disability and disease list are not common, 80U and 80DDB can be claimed together if the person is physically disabled, as well as he / she has undergone treatment of any mentioned disease under 80DDB.
Difference between Section 80U and 80DD?
Both 80U and 80DD are same as they are used to claim tax deduction against physical disability. The only difference is 80U can be claimed for self – if you are facing physical disability of at least 40%, where as 80DD can be claimed if your dependent family member is facing physical disability of at least 40%.
Who can claim 80U?
The tax payer who is facing physical disability of at least 40% can claim Section 80U deduction of income tax act with maximum limit of Rs. 75,000 (disability between 40% to 79%) and Rs. 1,25,000 (disability of 80% or above), with old tax regime.
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