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Are you disabled? Save income tax under section 80U

Do you have a disability? Are you handicapped in any way? If yes, you can have some benefit in income tax under sec 80U.



In “Have a disabled dependent? Save income tax using section 80DD”, we saw that you can save tax if you have a dependent having a disability.

But what if you yourself are handicapped? Do you get any tax benefit? Yes, you can. Section 80U of the IT act provides you a facility of claiming a deduction if you have a disability.

(Most of the provisions are similar to Section 80DD, the only difference is that in Section 80U, you get the benefit of deduction if you yourself have a disability)

How much income tax can you save?

The deduction allowed is Rs. 50,000 or Rs. 75,000 depending on the extent of your disability.

A deduction of Rs. 50,000 is generally allowed if you have a disability, but it increases to Rs. 75,000 if your disability is severe.


Remember: this is a lump-sum deduction, and doesn’t depend on the amount that you spend on medical treatment, etc. You get this deduction for the fact that you have a disability – you don’t have to show proof of spending any money.

The income tax that you can save would depend on the tax bracket that you fall into – it can range from Rs. 5,000 to Rs. 15,000 (for Rs. 50,000 deduction) or from Rs. 7,500 to Rs. 22,500 (for Rs. 75,000 deduction).

(To know the current income tax slabs, please read “Income Tax (IT) Slabs / Brackets”)

How do you qualify for this deduction?

As mentioned earlier, the very fact that you have a disability qualifies you for this deduction. No bills or receipts are required.

The only requirement is to have a certificate from a medical authority certifying that you have a disability. You can claim the deduction u/s 80U as long as the certificate is valid.

But you can claim the deduction for the year in which the certificate expires. For example, if the certificate expires on 10th August 2008, you can claim the deduction for FY 2008-09, but not for FY 2009-10 and beyond unless you renew the certificate or obtain a new one.


What is considered as disability?

Disability would be as defined by the “Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995”.

It includes the following:

  • Blindness
  • Low vision
  • Leprosy-cured
  • Hearing impairment
  • Locomotor disability
  • Mental retardation
  • Mental illness

A person with disability means a person suffering from not less than 40% of any of the above disabilities.

Severe disability means 80% or more of one or more of the above disabilities.

Who is qualified to claim this deduction?

Any individual can claim this deduction. Please note that the individual has to be a resident of India – a non-resident Indian (NRI) can not claim deduction u/s 80U.

Also, a Hindu Undivided Family (HUF) can not claim deduction u/s 80U.


What are the requirements?

You need to have a proof of disability to claim deduction under section 80U. This certificate of disability needs to be obtained from relevant medical authorities.

If you have Autism, Cerebral Palsy or multiple disabilities, form number 10-IA needs to be filled up. There are two other formats: for mental illnesses and all other disabilities.

(Please scroll down to download the forms / formats / specimen)

The relevant authorities who can sign these forms are:

- A Neurologist having a degree of Doctor of Medicine (MD) in Neurology (or, in case of children, a Pediatric Neurologist having an equivalent degree)

or

- A Civil Surgeon or Chief Medical Officer (CMO) of a government hospital

Downloadable Forms

Here are the forms (or format of certificates) that you would require to claim deduction under section 80U.

(You need to be logged-in to download the forms / certificate formats. Please take advantage of the free registration that takes less than a minute. To know the benefits of registration, please click here.)





Form / Format Purpose
Download Form 10-IA For Autism, Cerebral Palsy or multiple disabilities
Download the format Certificate of mental retardation
Download the format Certificate of any other disability

(You need to be logged-in to download the forms / certificate formats. Please take advantage of the free registration that takes less than a minute. To know the benefits of registration, please click here.)

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Comments

  1. I have a hearing disability of more than 40% for which I have to wear a digital hearing aid. My doctor is an ENT specialist of Apollo Clinic, Chennai. I got a letter from her & approached a qualified neurologist (MD) in the same clinic for his signature & seal on the required form ( form 10 IA) .

    But he says that the rules have changed & from this year he is no longer authorized to sign . The patient has to approach a govt hospital & appear before a panel of 3 specialists to get the form filled, approved & signed .

    Is this true? Is it sufficient to get it signed by the Chief Medical Officer of Apollo Hospital?

  2. Anonymous says:

    Hi Rama,

    I think you would need to get the certificate from a government hospital.

  3. Rakesh Makwana says:

    Dear Mr. Rama,
    I appreciate your website and very useful information as well as your answeres to various quarry raised by readers like me.

    I request you to clarify wheather any person who has polio and has disability as well handicap certification can avail 80U benifit or not ?

    Thanking you in advance and in anticiaption of your quick reply.

  4. Anonymous says:

    Hi Rakesh,

    Thanks a lot – I am really glad that you find this website and my answers useful.

    I believe Polio would be covered under “Locomotor disability”. Therefore, you should be able to claim the deduction under section 80U.

  5. vaithialingam says:

    If am understood correctly , Medical certificate is required only one time for Permanent disability, for the first time assesment year only.For the Central Govt servant who are P/H as per person with disabilities act. the required medical certificate from the special medical Board, which are the basis for the appointment already with the appointing authorities who incidently pay drawing officer who will verify the severity and indicate it in the form-16 accordingly. However for the medical disability or temporary disability the time frame given in the certificate expired and fresh certificate from the Governement doctor. necessary. Pl. correct me if I am wrong..

    My question here is if a permanently disable assessee who has been certified as permanently disable ,transfer to another department, and his personal files and servicebooks are yet to be received from the old office so the new office is inciting a fresh medical ceritificate since they have no record, they refuse to give and plea from the PH, certificate for permanent disabilities is only one time is given for the first time assess year only.. Please comment.

  6. Anonymous says:

    Hi Vaithialingam,

    I am sorry, but I am not fully aware about the functioning of government departments and the procedures in care of transfer.

    If your new department is not giving you the benefit of 80U till they don’t receive your file, you can always claim a refund when you file your income tax return.

  7. My father is paralyzed on one one side of his body. Can he claim deduction for this?
    Also, even though he gets free medical facility from Govt. but his physiotherapy sessions are done at home from his own pocket.Can this be claimed as deduction too from his pension ?Do I have to provide any receipt for physiotherapy & nursing ?

  8. SUNIL D.HANSRAJANI says:

    I want to know the income rebate under 80U for disability person 50% above. Your reply is highly appreciated.

    Thanking you

    SUNIL D.HANSRAJANI

  9. hi

    my father in law is xen in horticulture chandigarh. having a good
    remuneration. He involves in a deal of Rs. 1 crore 25 lakh from the
    sale of ancestral land. which he get abt 75% from the ending this
    financial year.

    my question is that should he open a special account HUF in which
    KARTA is himself? what should we do for tax savings because my father
    is already a tax payee. can we adjust this above said amount in our
    normal savings and current family accounts in different banks?

    waiting for early reply.

    Kinds regards
    Mrs. Shalini Kansal
    09417474678

  10. Hi rk,

    I believe paralysis would be considered a locomotive disability, and should be covered.

    As long as you get a certificate from the relevant authority and meet the conditions mentioned in the article, you can claim the amount.

  11. Hi Sunil,

    The details are clearly mentioned in the article – 50% is not considered severe disability, so a deduction of Rs. 50,000 would be available.

  12. Hi Shalini,

    Since the amount involved is quite large, I suggest you consult a practicing CA before taking any decision yourself.

    BTW, the question has been posted under a wrong article… This one is about the tax benefits for disability…

  13. Vikas Bhatia says:

    Hello,

    When i open your website it seems to me very useful. i request you to clarify whether deaf and dumb employee who is working in govt. service, is having 95 db loss for both ears can avail 80 u benefits or not. If yes, then how much.

    Regards,

    Vikas Bhatia

  14. Anonymous says:

    Hi Vikas,

    Thanks…

    I do not know much about the % of disability based on decibel level loss… I think you should consult a doctor, and find out what percentage of disability this translates to.

    If this % is equal to or more than 40%, you can avail of the benefit as described in this article.

  15. any spcial housing loan scheme available in baroda for disable person? if yes, pls provide detail on pravin_v_makwana@yahoo.co.in

  16. ramkumar Jangra says:

    I read some where that the limit for the above said subject has been raised from 75000(severely disabled) this financial year. please give update information on above said ID. Thank you.

  17. A K Manchanda says:

    Sir

    I have come to know that limit for paying income tax under section 80(u) for severely handicapped persons with disability more than 80% has been raised from Rs. 75000/- to Rs. 100000/- from the year 2009-10.

    Kindly intimate the factual position on the above mail address.

    A K Manchanda

  18. Anonymous says:

    As a senior citizen,my father’s pension was within the taxable limit for the past 3 years so he didn’t file any tax returns.
    Now he wants to spread over the pension arrears he received in 2009 to the past 3 years to minimize his tax liability on arrears.Obviously in which case he would be liable to pay tax for those 3 years.
    Since he is also disabled for the past 4 years, can he avail of the deduction under Sec. 80U & 80DDB for the past 3 years corresponding to those years tax liability ?

  19. Mr. Ravindra Bhegade says:

    comment just sent

  20. N.Suryanarayana, Rajahmundry says:

    Dear Sirs,

    I would like to inform you that I am Physically Challenged person (Ortho.) with 50% disability (Permanent) working in Central Government organisation. The certificate obtained from the concerned Civil Surgeon, Govt. Hqrs. Hospital produced to the Deptt. at the time of my appointment in 1989.
    Now I am comes under I.T. Hence, kindly clarify whether the permanent disability certificate already produced to the Deptt. is enough to claim I.T. exemption u/s 80-U.

  21. I know that deduction under 80U is Rs 50,000 till last year.
    I understand that it has been raised to Rs ONE lakh this year.
    Is this correct. Pl clarify.
    If this added to exemption under 16A then does it mean that any other investment (such as LIC policy, any other insurance policy, housing loan etc.,) cannot be considered under this category.

  22. peetambara yaduwanshi says:

    Hello,

    My father is in govt. job(bank). He is a tax payee person. He is suffering from “Spino Cerebellar Atexia” a neurological desease considered under physical disability more than 40%. wheather he can apply for deduction under 80U & is bank’s consideration letter is necessary for it. we already have docter’s approved certificate. Please reply as soon as possible so we can apply for previous year.
    Thanking you

  23. sir,
    is there any increase in the deduction for the persons having disablity more than 40%. what is the minimum disability % for claiming deduction under 80U.Is the conveyance allowance being paid is deductible under 10(14(II)).
    i will be happy if you could clear my doubts.
    Regards
    Sathyam

  24. dear sir,

    Let me know the effect date (FY) for Rs.50,000/- U/S 80U

    Thanks

    velan

  25. sanjay gupta says:

    dear sir,
    i am a handicapped person and want to know that rs. 50,000 will be deducted from gross income or will be included in 1,00,000 limit of saving.

    thanx

    sanjay gupta
    ajay_shrey@yahoo.com

  26. Jayashankar says:

    I am 100% Hearing Impaired,80U latest was rs 75k in 2009-2010,
    what about 2010-2011 for 80U?Please update email me for latest 80U! thanks

  27. vinod.C.L says:

    I am suffering from visual disability problem. One eye of me had no vision. For one eyed man medical Board issue only 30% disability certificate. I had also get 30% disability certificate from Medical board. Please clarify whether I am eligible for the Tax exemption under section 80U? Then give the details.

  28. Gabriel says:

    Hi,
    I would want to know, if I can avail tax exemption for the dependent father-in-law who is blind and both in-laws have no source of income, but totally depend on us. My wife is working.So can i avail this benefit?

  29. Dr Dharam Paul says:

    Sir
    I am physically handicap person with 50% disability. Kindly inform me about the amount of deduction I am eligible u/s 80U.
    Regards
    Dr Dharam Paul Chaudhary
    Sr. Scientist
    ICAR

  30. prem jacob says:

    i have 80u certificate and with 75k excemption now iam going to buy a car and i heard road tax and vehicle tax exemption for us please give details

  31. m m m patro says:

    My left eye is totally blind kindly suggest me amount of disability I go and where

  32. R K Vishwakarma says:

    Was the exemption Rs.75000 or Rs. 1,00,000 u/s 80u during financial year 2009-10.Please inform soon via email.

  33. Patel Mukesh says:

    any spcial housing loan scheme available in any city of gujarat for disable person? if yes, pls provide detail on patelmukeshs18@yahoo.co.in

  34. Anonymous says:

    Hi Prasanta,

    The certificate can be produced and used for claiming tax benefit as long as the certificate is valid.

  35. Bharath Rathna says:

    I am a govt employee affected by polio and getting double the conveyance allowance. For tax calculation will there be any deduction of the conveyance allowance fully or some percentage please inform.As they have increased for those above 80 percent 75000 to one lakh is there any change for above 50 percent. If I take bond this year 2010-11 will it be beneficial. waiting for earliest reply.

  36. prasanta padhi says:

    dear sir
    i would like to know i have a physically handicapped certificate issued in 1990 and marked permanent disable.i want to know whether that medical certificate issued by a CDMO can be produced for income tax exemption this year.
    with regards

  37. sir,
    i have right hand grip problem with disability of 8% given by medical board. is i am able to get benefit of under section 80U.

    • Hi Ajay,

      If it is covered under the above mentioned disabilities, you can claim the benefit. Please take your doctor’s advice to find out if it falls under the above mentioned disabilities.

  38. MR.P.V.PATHAK says:

    whether 80 u certificate issued by govt. hospital is sufficient proof to claim deduction or is the assessee required to appear before income tax authorities for availing deduction for the first time.

  39. Muqtar Ahmed says:

    Hi,
    I am Handicap person with 40% disability can i avail the tax exemption under sec 80U. If yes please let me know what is the procedure to avail this benefit.

    • Hi,
      I am Handicap person is gov.servant with 40% disability can i avail the tax exemption under sec 80U. If yes please let me know what is the procedure to avail this benefit. i

  40. DEAR ALL
    i am hearing handicapped and got a certificate from govt hospital. my certificate says 47% hearing impaired with 56 db loss. But when applying for jobs,it says hearing loss of 60 dB HL or more in the better ear for conversational range of frequencies is must to avail the reservation.so am i not eligible for reservation.clear me friends.thanks in advance.

  41. Alamelu Venkatesan says:

    I am a congenital myopathy person having 82% permanent disability. I have got certficates about the permanent nature of my disability from several Govt. hospitals and I am also availing deduction under section 80U of Income tax rules so far.I would like to know whether the certficates obtained earlier is valid always or have to obtain a certficate in Form10-1A every year to avail the income tax concession under section 80U ? i.e Whether I have to a fresh certificate for the financial year 2011-12 again ?Kindly clarify.

  42. Prem Kumar says:

    Sir,
    I have disability certificate which shows disability exceeds 50%. During the year 2009 my employer asked me to submit disability certificate in the proforma that is FORM NO.10-IA for availing rebate under 80U and I submitted the same to employer and same proforma was made valid for 2 years by doctor and was issued in Oct 2009 . Now I am being asked to submit new certificate for availing the rebate as 2 years are passed. Kindly inform me whether photcopy of disability certificate is not sufficient for availing the rebate?
    Why is fresh certificate in proforma as above is required. The doctors are not easily certifying the proforma and some staff in Govt. hospitals are working as brokers and demand money for issuing the said certificate in proforma as stated above .
    One more question is whether I can take refund based on the disability certificate from Income tax deptt in case I fail to submit fresh proforma for availing income tax rebate.
    Your reply shall be highly solicited.
    P.Kumar
    psdb@rediffmail.com

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