Section 80U harmonizes the criteria for defining disability as existing under the Income-tax Rules with the criteria prescribed under the Persons with Disability (Equal Opportunities, Protection of Rights, and Full Participation) Act, 1995.

The disabilities include:

  • Locomotor Disability
  • Mental illness
  • Leprosy
  • Blindness
  • Hearing impairment
  • Low vision
  • Mental retardation

Eligible assessee: This section is applicable to a resident individual, who, at any time during the previous year, is certified by the medical authority to be a person with disability. The benefit of deduction under this section is also available to persons suffering from autism, cerebral palsy and multiple disabilities.

The section also provides a standard definition of severe disability, which is considered when a person is suffering from 80 percent disability or multiple disabilities. However, these disabilities should be certified by a medical authority.

The Medical Authorities

Tax deductions can only be availed if one of the following medical authorities qualifies the individual as disabled:

  • A Neurologist with an MD in Neurology
  • If it is for children, a pediatric neurologist
  • A Civil Surgeon or CMO (Chief Medical Officer) of any government hospital

Deduction Limit

To claim deductions under Section 80U, Individuals or persons with disabilities are categorized into two types:

  • A person with a disability:Any individual who is suffering from at least 40 percent disability. If the conditions are met, then the person is eligible for claiming a tax deduction of Rs 75,000 under this Section.
  • A person with severe disability:An individual who is suffering from at least 80 percent of a disability or multiple disabilities. If the conditions are met, then the person is eligible to claim a tax deduction of Rs 1,25,000.
  1. The assessee claiming a deduction under this section shall furnish a copy of the certificate issued by the medical authority in the form and manner, as may be prescribed, along with the return of income under section 139, in respect of the assessment year for which the deduction is claimed.
  2. Where the condition of disability requires reassessment, a fresh certificate from the medical authority shall have to be obtained after the expiry of the period mentioned on the original certificate in order to continue to claim the deduction.