Section 80U – Deduction for Disablity of Assessee
Income Tax Act had given a major relief to those Resident Individual who are suffering from a disability in Physical. The section was introduced to provide relief to disabled taxpayers. The Section is applies to Individual himself only, not on his/her spouse/children or parents. The main benefit of this section is the assessee get a flat amount of deduction.
Applicable Section – Section 80U of The Income Tax Act
Eligible Assessee – Resident Individual
Provision of the Section – a resident individual who, at any time during the year is certified by the medical authority to be a person with disability [as defined under Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995] [w.e.f. assessment year 2005-06 including autism, cerebral palsy, and multiple disabilities as defined under National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation & Multiple Disabilities Act, 1999].
Amount of Deduction –
1. Person with disability (Less than 80% disability) – Rs 75,000 Flat deduction
2. Person with severe disability (80% or more disability) – Rs 125,000 Flat deduction