persons with disabilities to claim tax credits. Any resident of India with a disability can claim tax
exemption of up to Rs 75,000 on their annual income. The Tax Regulation allows persons with
disabilities to enjoy tax benefits when filing an ITR.
In other words, Residents of India who are recognized as disabled under laws established by the Government of India may qualify for Section 80U tax deductions. An individual applying for tax exemption must be a resident of India during the reporting year and suffer from at least 40% disability as defined by law.
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Eligibility Criteria for 80U Income Tax Deduction
However, As discussed, Section 80U allows residents of India who have a disability verified by a recognized medical authority to claim tax credits. The main criterion that must be met is that the deficiency is at least 40%, which must be confirmed by an authorized medical institution.
Section 80U Disability Definition
Disability is defined in accordance with the Disabled Persons Act 1995 enacted by the Government of India. A person must have a 40% disability to be eligible to claim tax credits under the section.
An applicable disadvantage under this section may be any of the following:
Poor vision: people with visual impairments that cannot be corrected with surgery but who can still see through any vision enhancement device.
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Blindness: people who are completely blind or have a field of vision limited to 20 degrees or worse, and people with a visual acuity of less than 6160 after wearing corrective lenses.
Cured leprosy: People who are cured of leprosy but have lost sensation in their arms or legs and have paresis in one eye or eyelid. This category also includes people who cannot engage in any activity because of the extreme deformities that have developed as a result of leprosy.
Hearing Impaired: Individuals with a hearing impairment whose hearing loss is at least 60 decibels.
Mental retardation: people with a subnormal level of intelligence as a result of incomplete or inability to develop their mental abilities.
Locomotor disability: people with limited limbs due to the inability to use the muscles or bones of the joints.
Section 80U also defines a severe disability, which is a condition in which the disability is at least 80%. Persons with severe disabilities may qualify for higher tax deductions. The severe disability category also includes other disabilities such as autism and cerebral palsy.
Download Automated Income Tax Revised Form 16 Part B for the Financial Year 2021-22 in Excel[This Excel Utility can prepare at a time 100 Employees Form 16 Part B]
80U Deduction: Types
Category of Disability Determination of Maximum Disability Tax Credits
Disabled At least 40% disability Rs 75,000
Severely Disabled Person At least 80% Disability Rs. 1,25,000
In addition, 80U deductions for AY 2020 21 are Rs 75,000 and Rs 1,25,000 for persons with disabilities and severe disabilities respectively. Tax deduction limits were introduced in 2015-2016. Previously, the limit was Rs 50,000 for persons with disabilities and Rs 100,000 for those with severe disabilities.
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How do I get tax credits under Section 80U Income Tax?
With the exception of a certificate of disability obtained from a recognized medical authority, the taxpayer is not required to submit any documents in order to receive deductions under section 80U.
How to get sick leave?
The necessary certificate of disability can be obtained from the following authorities:
Civil Surgeon or Chief Medical Officer (CMO) working in a public hospital
Neurologists have a Doctor of Medicine Degree in Neurology
Pediatric neurologist, if the child is disabled
An individual wishing to claim tax deductions under section 80U of the Indian Tax Act must provide a certificate of disability provided at the time of filing the ITR in accordance with the provisions set out in section 139 for the relevant AY.
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