Section 80U: Income Tax Exemption for Disabled Persons

The time of filing income tax has arrived! Persons with disabilities in India are entitled for deduction in income tax under Section 80U of the Income Tax Act. Moreover individuals are allowed the get tax benefit under Section 80DD for taking care of a disabled dependent. In this article we will talk about how to avail these tax benefits.

Income Tax Benefit for Persons with Disabilities

Government recognizes the fact that the persons with disabilities have to work harder in order to earn the same amount of income. Also, a person with disability may need to spend additional amount on aids, medicines and other kinds of treatment. In order to set off these costs the government allows income tax rebate to the persons with disabilities.

Eligibility

A person who has a disability certificate issued by the Chief District Medical Officer or a board constituted by a government hospital would be considered eligible for tax benefit under Section 80U.

For neurological disabilities a neurologist with an MD in Neurology can issue the disability certificate. In case of children, a paediatric neurologist having an equivalent degree would need to certify.

In case you have Unique Disability ID card,  you can also use this card as a document to prove your disabling condition.

Deductions Allowed under Section 80U

• If you have disability between 40% to 79%, you will be allowed a deduction of Rs. 75,000
• If you have 80% or above disability, the deduction amount is Rs. 1,25,000

What Types of Disabilities are Covered under Section 80U

The RPWD Act 2016 is now in force. In this Act, the number of recognized types of disabilities has been been increased to 21.

• Victims of acid attacks have been included in the list of persons with disabilities. Unfortunately, in India, acid attacks have been on the rise in last few years. Girls and women are often left severely disfigured/disabled due to such attacks.
• Dwarfism and Muscular Dystrophy have also been included as separate categories of disability.
• Three blood disorders, Thalassemia, Hemophilia and Sickle Cell disease, have been included in the list of disabilities.

Documents Required for Claiming Tax Benefit under Section 80U

All you need is a valid disability certificate or UDID Card.

At the time of filing ITR, you do not need to submit disability certificate or any other specific document for claiming disability tax benefits. In your ITR, you can simply fill-in the deduction amount you are eligible for.

If the tax authorities would want to verify your claim under Section 80U, they will contact and ask you to submit disability certificate. At that time you would need to furnish a copy of the valid disability certificate.

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