Section 80U – Certain provisions of India’s income tax laws offer tax advantages to people if they and any of their close relatives suffering from several illnesses. Section 80U provides tax benefits if a person becomes disabled, while Section 80DD provides tax benefits if such an individual taxpayer’s dependent family member(s) becomes disabled. This review would concentrate on the tax incentives accessible under Section 80U.
Who Can Claim Deduction Under Section 80U?
A resident citizen who is approved as an individual with an impairment by a medical professional can receive the Section 80U tax benefit. An individual with a disability is described as having at least 40% disability, as approved by medical authority, for the purposes of this section.
Disability has also been specified as being one of the preceding for the purposes of this clause.
- Low vision
- Hearing impairment
- Locomotor disability
- Mental retardation
- Mental illness
The section further describes a serious impairment, which is classified as a disorder wherein the impairment is 80% or greater. Multiple disorders, autism, and cerebral palsy are examples of extreme disabilities.
Must Read – What is Section 80C?
Deduction Under Section 80U
Individuals with disabilities are eligible for a ₹75,000 deduction, and people with serious disabilities are eligible for a ₹1,25,000 deduction.
Guidelines for Claiming Section 80U Deductions
Aside from the certificate certifying the condition from a registered medical official in Form 10-IA, no paperwork is needed. There is no requirement to produce bills for the damages accrued in the pursuit of care or any other expenditures.
To make a claim under that same provision, one should provide a medical certificate showing the condition along with the income tax returns required under Section 139 for the related AY. And after the disability assessment certificate has expired, those deductions will still be obtained in the year when the certification ends.
That being said, a new credential will be provided starting with the next year in order to assert the benefits under section 80U.
Certificates must be received by medical officials, which could be either a neurologist with a Doctor of Medicine (MD) in Neurology (or, in the event of infants, a paediatric neurologist with an equal degree) or a civil surgeon or Chief Medical Officer in a government hospital.