Disability Tax Exemption U/s 80U | With Automatic Income Tax Arrears Relief Calculator U/s 89(1) with Form 10 E for the F.Y.2022-23(Up-to-date Version)

 Disability Tax Exemption U/s 80U| There are certain sections in the income tax laws of India which

 provide tax benefits to people if they or any of their family members suffer from a certain disability.

 

Section 80U offers tax credits if an individual has a disability and Section 80DD offers tax credits if the taxpayer's dependent family member has a disability. This article is about a discussion of the tax credits available in section 80U.

 

Who Can Apply for a Section 80U Deduction

A resident who has been certified as disabled by a medical authority is eligible for a tax credit under section 80U. For the purposes of this section, a person with a disability of at least 40% as established by the health authorities is considered disabled.

Download and prepare at a time 50 Employees Form16 Part B for the Financial Year 2021-22

For the purposes of this section, disability is defined as one of the following:

• Blindness

• Poor eyesight

• Healing from leprosy

• Hearing problem

• Motor disability

• Mental delay

• Mental disease

 

The section also defines a major disability, which refers to a condition where the disability is 80% or more. Severe disability also includes multiple disabilities, autism and cerebral palsy.

 

Quantum deduction up to 80U

Deduct Rs. 75,000 is allowed for people with disabilities, Rs. 1.25.000 deductions for people with severe disabilities.

 

Section 80U Requirements for Requesting Deduction

No documentation other than a certificate of disability issued by a recognized medical institution on Form10-IA is required. There is no need to submit invoices for expenses incurred in connection with treatment or other similar expenses.

 

To apply under this section, you must submit a medical certificate certifying your disability along with your Section 139 tax return for the applicable. In the event that the certificate of invalidity has expired, you can still request these deductions in the year the certificate expires.

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However, a new certificate will be required next year to receive the benefits. Certifications can be obtained from medical authorities, which can be a neurologist with a doctorate of medicine (MD) in neurology (in the case of children, a pediatric neurologist with an equivalent degree) or a civil surgeon or medical director of a hospital public.

Note. If the invalidity is temporary and requires re-evaluation after a certain period, the certificate will start in the assessment year corresponding to the fiscal year in which it was issued and will end in the assessment year corresponding to the fiscal year in which the certificate expires.

 

Difference between 80U partition and 80DD partition

Section 80DD provides tax credits to family members and relatives of a taxpayer with a disability, while Section 80U provides tax credits to the taxpayer with a disability.

Section 80DD applies if a taxpayer pays a certain amount as an insurance premium for the care of a dependent person with a disability. Under section 80DD, the deduction limits are the same as in section 80U. Here dependent refers to siblings, parents, spouse, children, or a member of the same Hindu family as the taxpayer.

Download Automated Income Tax Arrears ReliefCalculator U/s 89(1) with Form 10 E from the F.Y.2000-01 to F.Y.2022-23(Up-to-date Version)