Applicable to: *Resident Individuals with 40%+ Disability*
This section provides fixed tax deductions to support differently-abled taxpayers, acknowledging their additional financial needs.
Key Features (AY 2024-25)
- Eligibility Criteria
✅ Disability Certificate Required from:
- Government hospital (Medical Board)
- Neurologist/Psychiatrist (for mental disabilities)
✅ Minimum Disability: 40% (as per RPWD Act 2016)
- Deduction Amount
| DISABILITY LEVEL | DEDUCTION |
| 40-79% Disability | ₹75,000/year |
| 80%+ Disability (Severe) | ₹1,25,000/year |
- Covered Disabilities
-
- Physical:Locomotor, blindness, low vision
- Mental:Autism, intellectual disability, mental illness
- Chronic Neurological:Parkinson’s, multiple sclerosis
Claim Process
- Obtain Disability Certificate(UDID card recommended)
- File ITR with:
-
- Form 10-IA (for physical disability)
- Psychiatric evaluation report (for mental disability)
Illustrative Examples
Case 1: 60% Locomotor Disability
- Deduction:₹75,000
- Tax Saved (@30%):₹22,500
Case 2: 90% Autism Spectrum Disorder
- Deduction:₹1,25,000
- Tax Saved (@30%):₹37,500
Comparison with Similar Sections
| SECTION | BENEFICIARY | MAX DEDUCTION |
| 80U | Self with disability | ₹1,25,000 |
| 80DD | Dependent with disability | ₹1,25,000 |
| 80DDB | Medical treatment | ₹1,00,000 (seniors) |
Pro Tips
- Link Aadhaar with UDIDfor easier verification
- Combine with 80Dfor health insurance premium benefits
- Check State Schemesfor additional disability pensions
FAQs
Q: Can NRIs claim this deduction?
A: No, only resident Indians qualify.
Q: Is temporary disability eligible?
A: No, only permanent disabilities (≥40%).
Q: Can a person claim both 80U and 80DD?
A: Yes, if you have a disability AND a disabled dependent.
Conclusion
Section 80U provides meaningful tax relief for persons with disabilities. Key steps:
- Register on the UDID portalfor certification
- Maintain medical recordsfor ITR filing
- Explore other benefitslike railway concessions
