Only a Resident Individual with a disability can claim deduction u/s 80U. HUF cannot claim deduction u/s 80U if any of its members are suffering from a disability. This income tax deduction can be claimed at the time of filing ITR under Chapter VI-A.
Who is Eligible to Claim Deduction u/s 80U?
An individual suffering from any of the following disabilities is eligible to claim deduction u/s 80U:
- Cerebral palsy,
- Low vision,
- Leprosy cured,
- Hearing impairment,
- Locomotor disability,
- Mental retardation,
- Mental illness.
What are the Conditions to Claim Deduction u/s 80U?
- The deduction must be claimed by a resident Indian.
- An individual should be independent. A dependant individual cannot claim this deduction on his disability.
- A copy of the certificate issued by medical authorities certifying the ‘person with a disability’ should be kept by an individual as proof.
- Unlike section 80DD, there is no condition of incurring expenses for such disability, in order to claim deduction u/s 80U.
Ankit is an individual who is suffering from hearing impairment. He is suffering from a 40% disability. During FY 2018-19, he has earned a salary of INR 5,20,000. And he has obtained a certificate from the medical authority for his disability.
In the above case, Ankit can claim a deduction of INR 75,000. He can claim this deduction under chapter VI-A while filing his ITR.
What is the Deduction Limit u/s 80U?
For FY 2018-19 deduction limit u/s 80U is as follows, a person with a disability is categorized into two parts:
- Disabled Person: An individual suffering from at least 40% of disability.
- Severely Disabled Person: An individual suffering from at least 80% of disability.
|Disabled Person||INR 75,000|
|Severely Disabled Person||INR 1,25,000|
ITR Form Applicable for Section 80U
The taxpayer can claim deductions u/s 80U while filing ITR if all the above-mentioned conditions are full-filled. Individuals/HUFs can claim 80U in any of the ITR forms, i.e, ITR 1, ITR 2, ITR 3, and ITR 4 depending upon their income sources. The due date for filing ITR is 31st July of the next FY if the tax audit is not applicable.
Along with the common documents such as Form 16, you only require the disability certificate issued by a medical authority to claim this deduction. However, in the case of illness such as autism and cerebral palsy, Form 10-IA additionally needs to be filled up.
Income Tax Rule 11A has prescribed the format of a certificate for claiming a deduction. You can download the certificate format from the Income Tax Department. You need to get this certificate from medical authorities. Any doctor who is notified by the central government to certify the disabilities can issue this certificate.
No. It is not necessary to incur any expenses to claim a deduction. You only have to obtain a certificate from medical authorities about your disability.
You should keep the certificate by the medical authority for your disability. Moreover for an illness like autism or cerebral palsy file Form 10-IA with IT Department.