Section 80U of ITA, 1961 : Section 80U: Deduction In Case Of A Person With Disability

Explanation using Example

Imagine a scenario where Ravi, a resident of India, has been diagnosed with a severe form of muscular dystrophy. Due to this condition, he is certified by the medical authority as a person with severe disability. Ravi is employed and earns an annual salary. When filing his income tax return for the assessment year, Ravi can claim a deduction under Section 80U of the Income-tax Act, 1961.

As per the provisions of this section, since Ravi has a severe disability, he is entitled to a higher deduction of one hundred and twenty-five thousand rupees from his total income. This deduction will reduce his taxable income, consequently decreasing the tax he has to pay for that financial year.

To avail of this deduction, Ravi must furnish a copy of the certificate issued by the medical authority confirming his disability status along with his income tax return. If the certificate has an expiry date and needs reassessment, Ravi must ensure to get a new certificate for subsequent assessment years to continue availing the tax benefit.