Tax deduction for disabled individuals
The income tax rules of India have specific parts that offer tax benefits to those who suffer from specific impairments, whether they or a member of their family do.
While Section 80DD provides tax advantages if a taxpayer's dependent family members have a handicap, Section 80U provides benefits if the taxpayer has a disability. The discussion of the tax advantages provided by Section 80U is the main focus of this article.
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Who can claim deduction under Section 80U?
The tax benefit under Section 80U may be claimed by a resident who has received a medical authority's certification as a person with a handicap. A person who has a disability for the purposes of this section is one who, as determined by the appropriate medical authorities, is at least 40% disabled.
The following list serves as a definition of disability for the purposes of this section:-
(1) Blindness
(2) Poor vision
(3) Leprosy-cured
(4) Hearing impairment
(5) Loco motor disability
(6) Mental retardation
(7) Mental illness
The definition of a severe disability, which refers to a condition where the impairment is at least 80%, is also provided in this section. Multiple impairments, autism, and cerebral palsy are also considered severe disabilities.
Quantum of Deduction under 80U
People with disabilities may deduct up to Rs. 75,000, while those with severe impairments may deduct up to Rs. 1,25,000.
Requirements to Claim Deductions under Section 80U
Further than the Form 10-IA disability certification from a recognised medical authority, there are no other requirements for proof. There is no need to present receipts for the fees paid for the course of treatment or other costs.
A medical certificate identifying a handicap and income tax returns filed in accordance with Provision 139 for the applicable AY are required in order to make a claim under this section. In the event that the certificate for the disability assessment has expired, one may still make such deductions in the year in which the certificate expires. To claim the benefits under Section 80U, you would need a new certificate beginning the next year.
Certificates may be obtained from medical professionals, such as a civil surgeon or the chief medical officer of a government hospital, or from a neurologist with a Doctor of Medicine (MD) in Neurology degree (or, in the case of children, a paediatric neurologist with an equivalent degree).
The certificate's validity begins with the assessment year pertinent to the financial year during which it was granted and ends during the assessment year pertinent to the financial year when the certificate expires if the handicap is transitory and calls for review after a specific time.
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