Who can claim tax deduction of Section 80U
- low vision;
- hearing impairment;
- locomotor disability;
- mental retardation;
- mental illness
The taxpayer has to keep a copy of the certificate issued by medical authority and such certificate has to be renewed in timely manner to keep claiming the income tax deduction under section 80U. You are not required to produce this certificate along with the income tax return. In case it is asked by the assessing officer then the same has to be produced before him.
Quantum of tax deduction
A Fixed tax deduction of Rs. 75, 000 is available for the taxpayer with disability if all of the other conditions mentioned under section 80U is satisfied.
A higher tax deduction of Rs 1, 25,000 can be claimed under section 80U if the taxpayer has severe disability. Severe disability means having any of the above disability of 80% or above.
This limit of 75000 and 125000 rupees has been increased in finance budget 2015 from the last year limit of Rs 50000 and Rs 100000 respectively. So for assessment year 2015-2016, tax deduction under section 80U will be Rs 50000 or Rs 100000 as the case may be . From assessment year 2016-2017 , Rs 75000 or Rs 125000 can be claimed as tax deduction under section 80U on the basis of percentage of physical disability as discussed above.