Deduction in case of a person with disability - Section 80U - Income Tax - Ready Reckoner - Income Tax

Deduction in case of a person with disability - Section 80U Applicability Section 80U applies exclusively to resident individuals who, at any time during the previous year, are certified by a medical authority as persons with disabilities. The deduction is not available to non-residents or to Hindu Undivided Families (HUFs), firms, or companies. The provision is not contingent upon the actual expenses incurred by the individual; rather, it grants a flat deduction based on the existence and severity of the disability. The person is suffering from not less than 40% of any disability given below: Blindness Low vision Leprosy-cured Hearing impairment Locomotor disability Mental retardation Mental illness Quantum of Deduction Section 80U provide for a flat deduction: Rs. 75,000 for a person with disability (i.e. having any disability not less than 40% or not more than 80%) ; Rs. 1,25,000 for a person with severe disability (i.e. having any disability of 80% or above) . There is no differentiation based on the nature of disability or actual expenditure incurred, in keeping with the policy of providing a standardized benefit. Prior to the Finance Act, 2015, the deduction was Rs. 50,000/- and Rs. 75,000 for disability and severe disability, respectively. The current limits reflect an effort to provide more meaningful relief in response to cost-of-living changes. Certification and Procedural Requirements To claim the deduction, the individual must furnish a copy of the disability certificate issued by a prescribed medical authority along with the return of income u/s 139. T the medical authority for certifying autism, cerebral palsy, multiple disabilities, person with disability and severe disability referred to in clauses (a), (c), (h), (j) and (o) of section 2 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999. The certificate must be in the form and manner as prescribed by rules 11A , such form including: Who constitutes the medical authority (e.g., neurologist, civil surgeon, chief medical officer); The form of certificate ( Form 10-IA for certain disabilities); Validity period of certificates where reassessment is required. If the certificate stipulates a period after which the extent of disability is to be reassessed, the deduction is not available for assessment years following the expiry of the certificate unless a new certificate is obtained and furnished. This procedural safeguard ensures that the deduction is claimed only by eligible individuals and that the status of disability is periodically verified. The rules prescribe the authorities competent to issue the certificate, typically government doctors or medical boards, and specify the format of the certificate. The main difference between Deduction u/s 80U 80DD is that 80DD deduction is in case of the dependent of the employee whereas 80U deduction is in case of the employee himself.