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Income tax

Shyam Kanabar (Article) (160 Points)

02 January 2012

please give me idea about deduction of 80U.please explain in the briefly manner.

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6 Replies

KARANDEEP,CA,B.Com,CS FNL (JOB) (457 Points)
Replied 02 January 2012

Section 80U contains the provision relating to DEDUCTION in the case of PERMANENT PHYSICAL DISABILITY (INCLUDING BLINDNESS) with following limits:-

Rs. 50,000/- in case of normal disability or
Rs. 75,000/- in case of severe disability.

This deduction is available to Resident individual.

Thanks & Regrds

Karandeep

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CA Ketan Waghela (Partner at Elite Educare) (356 Points)
Replied 02 January 2012

Shyam ji,

Section 80U is very similar to Sec. 80DD ( which offers tax benefits if the assessee has disabled dependents) in terms of the provisions it has. The main difference lies in the fact that this benefit could be claimed only if the assessee himself is suffering a disability.

Eligible Assesses

Resident Indians suffering a disability themselves. NRIs and HUFs are not eligible for a deduction under this section.

Deduction Limit

The available deduction limit is Rs. 50,000. For severe disabilities the available deduction limit is Rs. 75,000. This deduction amount is a lump-sum one, irrespective of how much you spend on medical treatment.

What is considered as disability?

A disabled person is one suffering from not less than 40% of any of the below disabilities. 80% or more of one or more of the below disabilities is considered as a severe disability. The following are included as a disability under this section.

· Blindness

· Low vision

· Leprosy-cured

· Hearing impairment

· Locomotor disability

· Mental retardation

· Mental illness