Income tax

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

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

2. Rs. 75,000/- in case of severe disability.

This deduction is available to Resident individual.

Thanks & Regrds

Karandeep

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

what u both said about provision is correct but deducton amount is wrong....

if severe disability is less than 80% then deduction is fixed at 50000/-

and if severe disability is more than 80% then it is fixed at 100000/-

Rs 75000 was deductible upto a.y. 2009-10 but after that it is amended to Rs 100000

am i correct??

Yes @ Siddharth Bumb -You are correct.

W.e.f 1.4.2010 ,The limit under section 80U has been increased   to Rs 100000/-

I agree with Siddharth ji & Mansha ji, The limit has been increased to Rs.1,00,000/-.

Thanks you for correcting me. 

W.e.f 1.4.2010 ,The limit under section 80U has been increased   to Rs. 100000/-