Section 80U: Tax Benefits for Persons with Disabilities
- Dipali Waghmode
- Nov 12
- 9 min read
Section 80U of the Income Tax Act, 1961, provides a fixed tax deduction to individuals certified as persons with disabilities. It is designed to ease financial strain by reducing taxable income, irrespective of medical expenses. The deduction applies to resident individuals who have at least 40% disability certified by a recognized authority. This benefit reflects the government’s intent to ensure inclusivity and financial support for differently-abled taxpayers through straightforward compliance.
Table of Contents
What is Section 80U of the Income Tax Act?
Section 80U of the Income Tax Act, 1961, provides a fixed tax deduction to individuals certified as persons with disabilities. This section was introduced to support taxpayers who face additional living costs due to their physical or mental condition. The deduction is not linked to actual medical expenses but is instead a flat reduction from taxable income, helping to lower overall tax liability. This benefit recognizes the unique financial challenges faced by persons with disabilities and aims to create a more equitable tax system. The deduction applies only to resident individuals, and the percentage of disability must be certified by an authorized medical authority.
Eligibility Criteria and Certification Requirements
To claim a deduction under Section 80U, the individual must be a resident of India with a minimum of 40% disability, as defined under the Rights of Persons with Disabilities Act, 2016. Disabilities covered include blindness, low vision, hearing impairment, locomotor disability, mental illness, autism, cerebral palsy, and multiple disabilities. The medical certification must be obtained from a government-recognized medical board or hospital. The certificate must clearly specify the type and extent of disability and may require periodic renewal based on medical assessment. Without a valid certificate, the claim under Section 80U is not admissible.
Deduction Limits under Section 80U
The Income Tax Act specifies two levels of deduction depending on the severity of disability:
For individuals with at least 40% but less than 80% disability, a fixed deduction of ₹75,000 can be claimed.
For individuals with 80% or more disability, classified as “severe disability,” the deduction increases to ₹1,25,000.
These limits are fixed, meaning they do not depend on the taxpayer’s income level or actual expenditure incurred on treatment or care. The goal is to simplify compliance and offer direct financial relief.
How to Claim Deduction under Section 80U
To claim the Section 80U deduction, the taxpayer must obtain a valid disability certificate from a government-approved medical authority before filing the Income Tax Return (ITR). While filing, the individual should select the relevant deduction section in the ITR form and enter the disability details and certificate number. The certificate need not be attached with the ITR but should be kept for verification if the tax department requests it. The deduction applies to gross total income before calculating the final taxable income. Platforms like TaxBuddy can simplify this process by automatically identifying eligible deductions and verifying certificate details, ensuring an error-free claim submission.
Is Section 80U Allowed in the New Tax Regime?
Under the new tax regime introduced in Budget 2020 and refined in Budget 2025, several exemptions and deductions have been removed. However, Section 80U is not available under the new regime. Taxpayers who wish to claim this deduction must continue to file under the old tax regime. Those opting for the new regime should evaluate whether the lower tax rates compensate for the loss of such deductions. Using an AI-driven tax filing platform like TaxBuddy can help compare tax payable under both regimes before making the choice.
How Section 80U Differs from Section 80DD
Section 80U and Section 80DD both provide relief related to disability, but they apply to different situations. Section 80U benefits the taxpayer who is personally disabled, allowing them to claim a fixed deduction directly. Section 80DD, on the other hand, applies to taxpayers who have dependents (such as a spouse, child, or parent) with a disability. The deduction limits under both sections are similar, but the purpose differs—Section 80U recognizes the individual’s own condition, while Section 80DD supports caretakers of dependents with disabilities.
Bank Account Documentation and Disability Benefits
Banks in India offer specific facilities and concessions for persons with disabilities, such as zero-balance accounts, accessible ATMs, and priority service counters. While Section 80U deductions are claimed through ITR filings and not bank documentation, a disability certificate may still be requested by banks during account opening for concessional benefits. The same certificate used for tax claims can be submitted for bank-related privileges. Additionally, consistency in PAN linkage and income declaration between tax filings and bank records is essential to avoid discrepancies.
Compliance Tips for Claiming Section 80U in ITR
Ensure the disability certificate is issued by a recognized authority and is valid for the financial year of filing.
Double-check the percentage of disability stated on the certificate to determine the correct deduction amount.
Maintain consistency between Form 16, Form 26AS, and ITR details to prevent mismatches during verification.
Avoid claiming the same benefit under both Section 80U and Section 80DD.
Use reliable e-filing platforms like TaxBuddy to automatically validate eligibility and ensure correct claim entries.
Importance of Disability Certificate Renewal
A disability certificate is often issued for a specific duration and must be renewed periodically. If the certificate expires before the assessment year, the taxpayer may not be eligible for the deduction. Renewal should be done through the same or another recognized medical authority, depending on the guidelines of the State or Union Territory. Maintaining an up-to-date certificate ensures uninterrupted benefits under Section 80U and avoids complications during tax scrutiny or e-verification.
Common Mistakes While Claiming Section 80U Deduction
Claiming the deduction without a valid or updated certificate.
Entering the wrong percentage of disability in the ITR form.
Confusing Section 80U with Section 80DD and claiming both for the same disability.
Forgetting to verify certificate details in Form 10-IA where applicable.
Not switching to the old regime when claiming Section 80U, leading to disallowance under the new regime.
Avoiding these errors ensures a smooth claim process and prevents notices or rectifications from the Income Tax Department.
Latest Updates on Section 80U from Budget 2025
Budget 2025 reaffirmed the government’s focus on inclusivity and welfare. While the deduction limits under Section 80U remain unchanged, compliance procedures have been simplified. Medical authorities can now issue digitally verifiable disability certificates that can be directly linked to PAN and used in e-filing. This digitization aims to reduce manual verification and make the process faster and more transparent. CBDT also clarified timelines for certificate updates and e-filing validations to make tax benefits under Section 80U easier to claim.
Conclusion
Section 80U is an essential provision that offers direct financial support to individuals with disabilities by lowering taxable income and easing compliance. It promotes equality in taxation by recognizing the additional challenges such individuals face. Filing through trusted platforms like TaxBuddy can make this process seamless by automating deduction checks and document management. For anyone looking for assistance in tax filing, it is highly recommended to download the TaxBuddy mobile app for a simplified, secure, and hassle-free experience.
FAQs
Q1. Does TaxBuddy offer both self-filing and expert-assisted plans for ITR filing, or only expert-assisted options? TaxBuddy provides both self-filing and expert-assisted plans to cater to different types of taxpayers. The self-filing plan is suitable for individuals with straightforward tax situations such as salaried employees or pensioners. It uses AI-driven automation to pre-fill details from PAN, Form 16, and Form 26AS. For taxpayers with more complex cases, such as business income, capital gains, or disability-related deductions, the expert-assisted plan offers personalized help from tax professionals who review, file, and ensure the claim under Section 80U is correctly applied.
Q2. Which is the best site to file ITR? The official income tax portal (incometax.gov.in) is the government’s primary platform for filing returns. However, many taxpayers prefer private platforms like TaxBuddy because they provide simplified filing experiences, guided data entry, and instant error checks. TaxBuddy’s system automatically identifies applicable deductions like Section 80U and ensures that the return is fully compliant before submission, minimizing the risk of notices or rejections.
Q3. Where to file an income tax return? Income tax returns can be filed directly on the government’s e-filing portal or through authorized platforms such as TaxBuddy. The advantage of filing with TaxBuddy lies in its automation and human verification—taxpayers can upload Form 16 or other documents, and the system fills in details automatically. Expert reviewers ensure that all deductions, including Section 80U benefits, are applied accurately and documentation is ready for verification if required.
Q4. What qualifies as a disability under Section 80U? Section 80U follows the definitions under the Rights of Persons with Disabilities Act, 2016. Disabilities that qualify include blindness, low vision, leprosy-cured condition, hearing impairment, locomotor disability, mental retardation, mental illness, cerebral palsy, autism spectrum disorder, and multiple disabilities. The disability must be certified by a recognized medical authority, with at least 40% impairment for eligibility. The certificate must mention the type and percentage of disability to claim the deduction.
Q5. What is the maximum deduction allowed under Section 80U? Taxpayers with a certified disability of at least 40% but less than 80% can claim a deduction of ₹75,000 from their taxable income. Those with a severe disability of 80% or more can claim a higher deduction of ₹1,25,000. These are fixed deductions that do not depend on the actual medical expenses incurred. The amount directly reduces taxable income, thereby lowering total tax liability.
Q6. Is the deduction available under the new tax regime? No, Section 80U deductions are not available under the new tax regime introduced under Section 115BAC. Taxpayers must choose the old regime if they wish to claim this deduction. Before selecting a regime, taxpayers should compare both structures—if deductions like Section 80U, 80C, or 80D apply, the old regime may offer better tax savings. Platforms like TaxBuddy can automatically compute tax under both regimes and suggest the more beneficial option.
Q7. What documents are needed to claim Section 80U? To claim this deduction, the taxpayer must possess a valid disability certificate issued by a government-recognized medical authority. The certificate must specify the nature and percentage of disability. Although the certificate is not required to be uploaded during e-filing, it should be kept ready for verification if demanded by the Income Tax Department. Other supporting documents such as PAN, Form 16, and income statements should also be consistent with the claim.
Q8. Can dependents of a disabled person claim this deduction? No, Section 80U applies only to individuals with disabilities who are claiming the deduction for themselves. Dependents of a disabled person cannot claim this deduction under Section 80U. Instead, they can claim relief under Section 80DD if they are financially supporting a dependent who has a certified disability. The two sections—80U and 80DD—cannot be claimed for the same individual in the same financial year.
Q9. What is the difference between Section 80U and Section 80DD? Section 80U provides a deduction to taxpayers who are themselves disabled, while Section 80DD applies to taxpayers who have dependents with disabilities. Under Section 80U, the taxpayer directly benefits based on their own disability status, while under Section 80DD, the benefit is given to a family member who incurs expenses for the care or rehabilitation of the disabled dependent. Both sections have the same deduction limits—₹75,000 and ₹1,25,000 depending on the severity—but apply to different taxpayers.
Q10. Does one need to show proof of medical expenses for Section 80U? No, the deduction under Section 80U is a fixed amount and does not depend on the actual medical or treatment expenses incurred. The only requirement is a valid disability certificate. Unlike some other deductions, there is no need to provide bills or receipts for medical expenses. The certificate itself serves as proof of eligibility for the deduction.
Q11. How can TaxBuddy help in claiming Section 80U? TaxBuddy simplifies the entire process of claiming deductions like Section 80U through automated and expert-assisted filing. The platform allows users to upload their disability certificate, which is then verified by professionals. Its AI-driven system ensures that the deduction is applied correctly in the ITR form, checks eligibility under the correct tax regime, and prevents common errors such as duplicate claims or incorrect data entry. This ensures maximum accuracy and compliance with minimum effort.
Q12. What happens if the disability certificate expires before filing ITR? If the disability certificate has expired before the relevant assessment year, the taxpayer must renew it before claiming the deduction. An expired certificate is considered invalid for the purpose of claiming Section 80U benefits. The renewal process involves visiting an authorized medical board or government hospital to reassess the disability percentage. Once renewed, the updated certificate can be used for future claims. It is advisable to renew the certificate well before the filing deadline to avoid disqualification of the deduction.
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