Who can claim deduction u/s 80U?
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.
Example: Ankit is an individual who is suffering from hearing impairment. He is suffering from 40% disability. During FY 2018-19, he has earned a salary of Rs. 5,20,000. And he has obtained a certificate from medical authority for his disability.
Solution: In the above case Ankit can claim a deduction of Rs. 75,000. He can claim this deduction under chapter VI-A while filing his ITR.
What is the deduction limit under Section 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||Rs. 75,000|
|Severely Disabled Person||Rs. 1,25,000|
Income Tax Rule 11A has prescribed the format of a certificate for claiming a deduction. You can download the certificate format from here. 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.