The Income Tax Act of 1961 provides for various deductions and exemptions to taxpayers to reduce their tax liability. One such provision is Section 80U, which provides a deduction to individuals with disabilities. In this blog, we will discuss the provisions of Section 80U of the Income Tax Act AY 2015-16 in detail.
Understanding Section 80U
Section 80U of the Income Tax Act is a provision that allows taxpayers with disabilities to claim deductions from their taxable income. The provision applies to both individuals and Hindu Undivided Families (HUFs) who have a disability as per the definition given in the Act.
Who is Eligible for Deduction Under Section 80U?
To claim a deduction under Section 80U, an individual must satisfy the following conditions:
- The individual must be a resident of India during the financial year for which the deduction is claimed.
- The individual must have a disability as defined in the Act. The definition of disability under the Act is as follows:
a. Blindness
b. Low vision
c. Leprosy-cured
d. Hearing impairment
e. Locomotor disability
f. Mental retardation
g. Mental illness
The extent of disability is determined by a medical authority as per the guidelines issued by the government.
Deduction Available Under Section 80U
The amount of deduction available under Section 80U depends on the extent of disability. Individuals with a disability of 40% or more but less than 80% can claim a deduction of Rs. 75,000. Individuals with a disability of 80% or more can claim a deduction of Rs. 1,25,000.
It is important to note that the deduction under Section 80U is available in addition to other deductions available under the Income Tax Act. However, the total deduction claimed by the taxpayer cannot exceed the taxable income.
Procedure for Claiming Deduction Under Section 80U
To claim a deduction under Section 80U, the taxpayer must submit a certificate issued by a medical authority. The certificate must state the extent of disability and the period for which the disability is likely to continue. The certificate must be submitted along with the income tax return.
Conclusion
Section 80U of the Income Tax Act is a beneficial provision for individuals with disabilities. It allows them to claim a deduction from their taxable income and reduce their tax liability. However, it is important to note that the deduction is subject to certain conditions and procedures, and taxpayers must ensure that they comply with them to claim the deduction.
Other Related Blogs: Section 144B Income Tax Act
Frequently Asked Questions (FAQs)
Q.1 What is Section 80U of the Income Tax Act?
A. Section 80U is a provision in the Income Tax Act that provides a deduction to individuals with disabilities from their taxable income.
Q.2Who is eligible for deduction under Section 80U?
A. Individuals who have a disability as per the definition given in the Act and are residents of India during the financial year for which the deduction is claimed are eligible for deduction under Section 80U.
Q.3 What is the definition of disability under Section 80U?
A. The Act defines disability as blindness, low vision, leprosy-cured, hearing impairment, locomotor disability, mental retardation, or mental illness.
Q.4 How is the extent of disability determined for the purpose of claiming deduction under Section 80U?
A. The extent of disability is determined by a medical authority as per the guidelines issued by the government.
Q.5 What is the deduction available under Section 80U?
A. Individuals with a disability of 40% or more but less than 80% can claim a deduction of Rs. 75,000. Individuals with a disability of 80% or more can claim a deduction of Rs. 1,25,000.
Q.6 Can HUFs claim deduction under Section 80U?
A. Yes, HUFs can claim deduction under Section 80U if a member of the HUF has a disability as per the definition given in the Act.
Q.7 Is the deduction under Section 80U available in addition to other deductions?
A. Yes, the deduction under Section 80U is available in addition to other deductions available under the Income Tax Act.
Q.8 What is the procedure for claiming deduction under Section 80U?
A. To claim a deduction under Section 80U, the taxpayer must submit a certificate issued by a medical authority stating the extent of disability and the period for which the disability is likely to continue. The certificate must be submitted along with the income tax return.
Q.9 Is the deduction under Section 80U available every year?
A. Yes, the deduction under Section 80U is available every year if the taxpayer satisfies the conditions for claiming the deduction.
