ITR Filing 2024: How Much Deduction Can Differently Abled People Avail Under Section 80U?

Section 80U and Section 80DD of the Income Tax Act deal with tax deductions for differently abled people and their dependents or family members with disabilities, respectively. Those with minor disabilities receive a flat Rs 75,000 deduction, and those with severe disabilities receive a flat Rs 1.25 lakh deduction. Also Read: ITR Filing 2024: File Returns On Time To Avoid Last-Minute Glitches—5 Issues You Could Face And How To Solve Them

Eligibility To Claim 80U

A person with a disability certified by medical authorities can claim tax benefits under Section 80U. This section defines a person with a disability as having at least 40 per cent disablement, including blindness, low vision, mental retardation and illness, leprosy-related hearing impairment, and locomotor disability. Those with 80 per cent or more disability are considered severe, which includes multiple disabilities, autism, and cerebral palsy, as defined under section 80U.  

Medical Authorities That Can Issue Disability Certificates

Medical authorities authorised to issue a disability certificate include:

• Neurologists with an MD Neurology degree
• Civil surgeons in government hospitals
• Chief medical officers in government hospitals
• Pediatric neurologists with an MD Neurology degree for disabled children

 

Required Documents

The section provides a simple method for claiming deductions for disability, requiring only a medical certificate from a recognised medical authority in Form 10-IA. No bills are needed for treatment costs or other expenses. To claim deductions, one must submit the certificate and income tax returns for the relevant assessment year (AY). If the disability assessment certificate expires, deductions can still be claimed in the year it expires, but a fresh certificate is required for benefits under Section 80U. Medical authorities can be neurologists with MDs in Neurology, civil surgeons, or chief medical officers in government hospitals. Also Read: ITR Filing 2024: How Much Deduction Does Section 80EE Provide On Home Loan Interest?

Difference Between Section 80DD and Section 80U

Section 80DD of the Income Tax Act allows deductions for a differently-abled person dependent on a disabled individual or Hindu Undivided Family (HUF) for support and maintenance. This deduction is applicable if a taxpayer deposits a specified amount as an insurance premium for their dependent disabled person. A dependent refers to the assessor’s siblings, parents, spouse, children, or a member of a HUF. If an individual incurs expenditure for their dependent relative and claims deduction under Section 80DD, they will not be eligible to claim deduction under Section 80U for their disability. Furthermore, Section 80U or 80DD deduction can only be claimed if the taxpayer opts for the old tax regime. The deduction limits are the same as Section 80U.