RSS

Section 80U-Deductions in respect of a person with disability

09 Dec

Under section 80U, in computing the total income of an individual, being a resident, who, at any time during the previous year, is certified by the medical authority to be a person with disability, there shall be allowed a deduction of a sum of fifty thousand rupees. However, where such individual is a person with severe disability, a higher deduction of one lakh rupees shall be allowable.

DDOs should note that section 80DD deduction is in case of the dependent of the employee whereas section 80U deduction is in case of the employee himself. However under both the Sections the employee shall furnish to the DDO following:

1. A copy of the certificate issued by the medical authority as defined in Rule 11A(1) in the prescribed form as per Rule 11A(2) of the Rules. The DDO has to allow deduction only after seeing that the Certificate furnished is from the Medical Authority defined in this Rule and the same is in the form as mentioned therein.

2. Further In cases where the condition of disability is temporary and requires reassessment of its extent after a period stipulated in the aforesaid certificate, no deduction under this section shall be allowed for any subsequent period unless a new certificate is obtained from the medical authority as in 1 above and furnished before the DDO.

3. For the purposes of section 80DD and 80 U some of the terms defined are as under:-

(a) “Administrator” means the Administrator as referred to in clause (a) of section 2 of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 (58 of 2002) ;

(b) “dependant” means—

(i) in the case of an individual, the spouse, children, parents, brothers and sisters of the individual or any of them;

(ii) in the case of a Hindu undivided family, a member of the Hindu undivided family, dependant wholly or mainly on such individual or Hindu undivided family for his support and maintenance, and who has not claimed any deduction under section 80U in computing his total income for the assessment year relating to the previous year;

(c) “disability” shall have the meaning assigned to it in clause (i) of section 2 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996) and includes “autism”, “cerebral palsy” and “multiple disability” referred to in clauses (a), (c) and (h) of section 2 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999);

(d) “Life Insurance Corporation” shall have the same meaning as in clause (iii) of sub-section (8) of section 88;

(e) “medical authority” means the medical authority as referred to in clause (p) of section 2 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996) or such other medical authority as may, by notification, be specified by the Central Government for certifying “autism”, “cerebral palsy”, “multiple disabilities”, “person with disability” and “severe disability” referred to in clauses (a), (c), (h), (j) and (o) of section 2 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999);

(f) “person with disability” means a person as referred to in clause (t) of section 2 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996) or clause (j) of section 2 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999);

“person with severe disability” means—

(i)  a person with eighty per cent or more of one or more disabilities, as referred to in sub-section (4) of section 56 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996); or

(ii)  a person with severe disability referred to in clause (o) of section 2 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999);

(h) “specified company” means a company as referred to in clause (h) of section 2 of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 (58 of 2002).

Meaning

Special Tax Benefits for the Disabled under Section 80U

Having a disability could be quite a setback for many. But did you know, the Income Tax Act, has provisions to take care of such disabled? Here is Section 80U, which offers special benefits to those tax assesses who suffer a disability. .

What Does Section 80U Offer?              

Section 80U is very similar to Section 80DD( which offers tax benefits if the assessee has disabled dependents) in terms of the provisions it has. The main difference lies in the fact that this benefit could be claimed only if the assessee himself is suffering a disability.

Eligible Assesses        

Resident Indians suffering a disability themselves. NRIs and HUFs are not eligible for a deduction under this section.

Deduction Limit                        

The available deduction limit is Rs. 50,000. For severe disabilities the available deduction limit is Rs. 100,000. This deduction amount is a lump-sum one, irrespective of how much you spend on medical treatment.

Documents Required                

To avail a deduction under Section 80U, no bills or receipts are required. What is required is a valid certificate from a medical authority certifying the disability. Separate forms need to be filled for mental illnesses and all other disabilities. For illnesses such as autism or cerebral palsy form number 10-IA additionally needs to be filled.

What is considered as disability?                       

A disabled person is one suffering from not less than 40% of any of the below disabilities. 80% or more of one or more of the below disabilities is considered as a severe disability. The following are included as a disability under this section.

-Blindness

-Low vision

-Leprosy-cured

-Hearing impairment

-Locomotor disability

-Mental retardation

-Mental illness

Other Key Points to Keep in Mind               

1) Deduction could be claimed even for the year in which the certificate expires. Beyond this year, no deduction could be obtained till the certificate is renewed or a new one is obtained.

2) The medical authorities who are deemed to certify are:

-A Neurologist with an MD in Neurology.

-For children, a Paediatric Neurologist having an equivalent degree.

-A Civil Surgeon or Chief Medical Officer (CMO) of a government hospital.

 

Ref: http://www.investmentyogi.com/oi_taxes/special-tax-benefits-for-the-disabled-under-section-80u.aspx

http://www.simpletaxindia.net/2012/10/how-to-calculate-tds-tax-on-salary-fy.html#ixzz2EOi4LIun

Advertisements
 
Leave a comment

Posted by on December 9, 2012 in TDS

 

Tags: , , , , , , , , , , , , , , , , , , , , , ,

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

 
%d bloggers like this: