Who can claim deduction under section 80U and how much?
Any resident individual who has been certified by a medical authority as a person with a disability can claim tax benefits under Section 80U. Under this section, a person with a disability is defined as a person who is suffering from one of the disabilities mentioned below or at least has a 40 percent disability. The disabilities include:
A) Locomotor Disability
B) Mental illness
E) Hearing impairment
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 qualify 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
To claim deductions under Section 80U, the individuals or persons with disability are categorized into two types:
- A person with a disability: Any individual who is suffering from at least 40 percent of 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.
These exemptions are above the minimum exemption limit for individual taxpayers, which are
- Under 60 – Rs. 2.5 Lakhs
- Between 60-80 – Rs. 3 Lakhs
- Above 80 – Rs. 5 Lakhs