There are some sections beneath the income tax laws of India that used to furnish the tax advantage to the person on the condition when they or any of their family members face some disabilities.
What is Section 80U?
Section 80U provides the tax advantages when the person suffers a disability but section 80DD provides the tax advantages when an assessee’s dependent family member is going through a disability. Here we discuss the tax advantages available beneath section 80U.
Eligibility for Deduction U/S 80U
A resident person who would be certified as an individual with a disability via medical head could avail of the tax advantage beneath section 80U. Towards the related section, a person with a disability is described as an individual who has at least 40% disability certified via the medical head.
Towards the purpose of this section the disability would be defined among the following:
- Blindness
- Low Vision
- Leprosy-Cured
- Hearing Impairment
- Loco Motor Disability
- Mental Retardation
- Mental Illness
The section indeed furnished a description of severe disability that refers to the condition in which the disability is 80% or exceeds. Intense disability comprises multiple disabilities, autism, and cerebral palsy.
Deduction under Section 80U for Individuals
Rs 75000 is permitted as a deduction for people who are suffering from disabilities and Rs 125000 deduction towards individuals who have a severe disability.
Need for the Claim of the Deductions Beneath Section 80U
No requirement of producing the bills is there for the cost incurred towards the pursuance of the treatment or these additional expenses.
Under this section to make the claim one should submit the medical certificate showing the disability with the Income-tax return under section 139 for the related AY. Towards the concern of the disability assessment certificate has been expired one should still enable to avail the deductions in the year in which the certificate gets lapses. But a newer certificate shall be needed from the next year to avail the advantage u/s 80U.
The certificates can be availed through the medical heads who can be either a neurologist posing a degree of Doctor of Medicine (MD) in Neurology for the case of the children a pediatric neurologist who has the equivalent degree or a civil medical officer in the government hospital.
Note: When the disability is not permanent and needs the reassessment post to some specific duration then the validity of the certificate shall begin from the assessment year concerned to the fiscal year in which the same is provided and finishes in the period of the assessment year related to the fiscal year when the certificate gets expired.
Major Difference Between Section 80U and 80DD
Section 80DD is subjected to apply when the assessee deposits the prescribed amount as an insurance premium to care for his or her dependent disabled individual. Beneath section 80DD the deduction limits are similar to section 80. In this, a dependent is concerned to the taxpayer, parents, spouse, children, or a member of a Hindu Unified Family.