What is Section 80-U
Updated on : Aug. 26, 2022 - 1 p.m. 17 min read.
Section 80U of the income tax is a deduction for disabled persons. This section provides a flat deduction to the disabled person on the basis of the severity of the disability irrespective of the amount of expenditure.
A resident individual who has been certified as a person with a disability by the medical authority can claim the tax benefit under Section 80-U. For the purpose of this section, a person with a disability is defined as a person who has at least 40 percent disability, certified by the medical authorities.
For the purpose of this section, disability has been defined as one of the following:
● Low vision
● Hearing impairment
● Locomotor disability
● Mental retardation
● Mental illness
The section also provides a definition for a severe disability which refers to a condition where the disability is 80 percent or more. Severe disability also includes multiple disabilities, autism, and cerebral palsy.
Form 10IA is a document that must be submitted for claim section 80DD deduction for disabilities like autism, cerebral palsy, and multiple disabilities.
Requirements to claim deductions:
A resident individual who has been certified as a person with a disability by the medical authority can claim the tax benefit under Section 80U. For the purpose of this section, a person with a disability is defined as a person who has at least 40 percent disability, certified by the medical authorities.
There isn’t any documentation requirement apart from the certificate certifying the disability from a recognized medical authority in Form 10-IA. There’s no need of producing bills for the cost incurred for the pursuance of treatment or such other expenses.
For making the claim under this section, one must submit the medical certificate indicating the disability together with the income tax returns as per Section 139 for the relevant AY. In case the disability assessment certificate has expired, one would still be able to claim such deductions in the year in which the certificate expires. However, a fresh certificate would be required from the succeeding year for claiming the benefits u/s 80U.
Certificates could be obtained from the medical authorities who could be either, a neurologist having a degree of Doctor of Medicine (MD) in Neurology (in the case of children, a pediatric neurologist having an equivalent degree) or a civil surgeon or Chief Medical Officer in a government hospital.
Note: If the disability is temporary and requires reassessment after a certain period, then the certificate’s validity starts from the assessment year relevant to the financial year during which it was issued and ends during the assessment year relevant to the financial year when the certificate expires.
Difference between Section 80U and Section 80DD:
Section 80DD provides tax deductions to the family members and the kin of the taxpayer with a disability, whereas Section 80U provides deductions to the individual taxpayer with a disability himself.
Section 80DD is applicable if a taxpayer deposits a specified amount as an insurance premium for taking care of his/her dependent disabled person. Under section 80DD, the deduction limits are the same as in Section 80U. Here, a dependent refers to the siblings of the assessee, parents, spouse, children, or a member of a Hindu Unified Family.