Section 80U of the Income Tax Act

Section 80U of the Income Tax Act offers tax benefits if an individual suffers a disability. If you have a certified disability of at least 40%, you can claim an 80U deduction of up to Rs.75000 on your income. The tax deduction under Section 80U of the Income Tax Act, 1961 provides much-needed financial support to taxpayers who face the challenges of disabilities.

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Disclaimer: ^Section 80C allows annual deductions of up to ₹1.5 lacs from the taxable income. Section 10(10D) provides tax-free maturity benefits for investments of up to ₹2.5 Lacs/ year, on policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws. All plans listed here are of insurance companies’ funds.

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Definition of a Person with Disability (PwD)

Persons with a disability, also abbreviated as PwD, are defined under the Persons with Disability (Protection of Rights, Full Participation and Equal Opportunities) Act, 1995.

To qualify for an 80U deduction, you should have a disability as defined under the Income Tax Act 1961.
Definition: Any person suffering from at least 40% disability as certified by appropriate medical authorities is defined as a disability.
Under the 80U Section, disability is mainly categorized into 7 types:
- Low Vision: Low vision is applicable to you if you have visual function impairment, which cannot be corrected by any surgery, but you still have the capability to use your vision via assistance from other devices.
- Blindness: This disability is referred to as a complete field of limitation of vision or lack of sight by 20 degrees of angle or worse than this, or visual acuity not more than 6160 after the corrective lenses.
- Hearing Impairment: You are certified as hearing impaired if you have a hearing power of not more than 60 decibels.
- Leprosy Cured: You are called leprosy cured if you have been cured of leprosy, but your sensation in your hands or feet has been lost, and you have paresis in the eye or eyelid. In addition, you should have intense deformities that may obstruct the performance of any beneficial occupation.
- Mental Retardation: You are declared mentally retarded if you have arrested development or incomplete development of mental abilities that results in subnormal levels of intelligence.
- Loco Motor Disability: In this case, you may have strictly limited limb movement because of a disability of joint bones or muscles.
- Mental Illness: Mental disorders other than mental retardation.

Definition of Severe Disability

The law of the Government of India also defines severe disability other than disability. It is defined as the condition where you may suffer from 80% or more disabilities in the categories mentioned above. This severe disability also includes the following:

Autism
Cerebral palsy, and
Multiple disabilities

You may also like: Section 80C Deduction of Income Tax act 1961

Tax Deduction under Section 80U

Category	Deduction Permitted
Disabled Person (40 percent disability)	Rs. 75,000
Severely Disabled Person (80 percent disability)	Rs. 1.25 lakhs

Documents Required to Claim Tax Benefits Under Section 80U of the Income Tax Act

Government employees and other taxpayers must submit the following document to register the claim with the 80U income tax:

Disability certificate in Form 10-IA (issued by a recognized medical authority)

What is Form 10-IA?

Form 10-IA is a medical certificate form that is used to certify the disability of a person for the purpose of claiming tax deductions under Section 80U. The certificate must be signed by a medical authority recognized by the Central Government.
What Constitutes the Medical Authority?

The following authorities are allowed to issue a valid medical certificate for the purpose of Section 80U:
- A civil surgeon
- the Chief Medical Officer (CMO) of a government hospital
- a neurologist holding an MD in Neurology
- a paediatric neurologist for children

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Difference Between Section 80DD and Section 80U

The key differences between the Section 80U and Section 80DD are as follows:

Feature	Section 80DD	Section 80U
Eligibility	Resident individuals and HUFs with a disabled dependent	Resident individuals who are disabled
Disability	The disability of the dependent must be at least 40%	The taxpayer's own disability must be at least 40%
Expenses	The deduction is allowed for medical expenses, maintenance expenses, and education expenses incurred for the disabled dependent.	The deduction is allowed for medical expenses and maintenance expenses incurred by the taxpayer for themselves.
Deduction limit	The deduction limit is Rs. 1.25 lakh for severe disability and Rs. 75,000 for moderate disability.	Up to Rs. 75,000 (Rs. 1.25 lakhs for severe cases)
Documents required	A copy of the disability certificate issued by a recognized medical authority in Form 10-IA	A copy of the disability certificate issued by a recognized medical authority in Form 10-IA

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FAQs

What can be claimed under 80U?
Under Section 80U of the Income Tax Act, 1961, a taxpayer can claim a deduction for the disability of self. The amount of deduction is as follows:
- Rs. 75,000 for a person with a disability of at least 40% but less than 80%.
- Rs. 1,25,000 for a person with a severe disability of at least 80%.
Can 80U and 80DDB be claimed together?

No, you cannot claim a deduction under Section 80U and Section 80DDB together for the same individual.
What investment comes under 80U?

There is no specific investment that is required to claim a deduction under Section 80U of the Income Tax Act 1961. The deduction is available for the disability of the taxpayer, regardless of whether they make any investments or not.
What is a rebate in income tax?

A rebate in income tax is a reduction in the amount of tax that a taxpayer owes. It is different from a deduction, which reduces the taxpayer's taxable income.
Are NRIs covered for the deduction under Section 80U?

No, the deduction is available only for resident Indian individuals. NRIs cannot claim the deduction.
Is it possible to claim deductions under both Section 80U and 80DD?

No, you can claim a deduction under either of the two sections. Therefore, you can claim a deduction under Section 80U or Section 80DD.
Can I claim a deduction under Section 80C if I claim a deduction under Section 80U?

Yes, you can claim a deduction under Section 80C even if you claim a deduction under Section 80U.
My disability certificate expired in the current financial year. Can I claim an 80U deduction?

Yes, you can claim the deduction under Section 80U even if your disability certificate has expired. However, you will need to renew the certificate for the next financial year to become eligible for the deduction.
Which form is required for certifying the disability to claim the deduction?

You need a medical certificate in Form 10-IA from a medical authority certifying your disability to claim the deduction.

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*All savings are provided by the insurer as per the IRDAI approved insurance plan.
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.
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