Tax Deduction in case of person differently abled

Section 80U of the Income Tax Act, 1961 provides benefit of deduction in respect of permanent physical disability to taxpayer. Conditions to be satisfied to avail this benefit 1. The taxpayer is an individual. 2. The taxpayer is resident in India. Deduction under this section is not available if he is non-resident in India for the relevant assessment year. 3. A person suffering from not less than 40% of disability given below. 4. Disability means Blindness, Low Vision, Leprosy-cured, Hearing impairment, Locomotor disability, autism, cerebral palsy, Mental retardation or mental illness. 5. The taxpayer shall have to furnish a copy of the certificate as issued by the medical authority along with the return of income. 6. Where the condition of disability requires reassessment, a fresh certificate from the medical authority shall have to be obtained after the expiry of the period mentioned on the original certificate in order to continue to claim the deduction. 7. Medical authority for this purpose means any hospital or institution specified by notification by the appropriate Government for the purpose of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995. Amount of Deduction If the aforesaid conditions are satisfied, then a fixed deduction of Rs. 50,000 is available that means it is a fixed deduction and it doesn’t depend on the amount that you spend on medical treatment, etc. A higher deduction of Rs. 1,00,000 is allowed in respect of a person with severe disability (i.e., having any disability of 80% or above). Further, another important point to note is that minor in the above situation will file their return of income in their individual capacity and their income will not be clubbed with their parents’ income. We at have the expertise in handling complicated individual taxation issues. Do contact us immediately, in case you require any help on taxation issues.

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