DEDUCTION UNDER SECTION 80 U OF INCOME TAX ACT, 1961 FOR PERSONS WITH DIABILITY

[Mr. M. GOVINDARAJAN]

Disability

Explanation to Section 80U (1) of the Income Tax Act, 1961 (‘Act’ for short) defines the term ‘disability’ that shall have the meaning assigned to it in Section 2(i) 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 disabilities" 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).

Section 2(i) of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 defines the term ‘disability’ as-

• Blindness;
• Low vision;
• Leprosy-cured;
• Hearing impairment;
• Locomotor disability;
• Mental retardation;
• Mental illness

Section 2(a) of the National Trust for Welfare Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 defines the term ‘autism’ as a condition of uneven skill development primarily affecting the communication and social abilities of a person, marked by repetitive and ritualistic behavior.

Section 2(c) of the said Act defines the term ‘cerebral palsy’ as a group of non progressive condition of a person characterized by abnormal motor control posture resulting from brain insult or injuries occurring in the pre-natal, perinatal or infant period of development.

Section 2(h) of the said defines the term ‘multiple disabilities’ as a combination of two or more disabilities as defined in Section 2(i) of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995.

Person with disability

Explanation (c) to Section 80U (1) defines the term ‘person with disability’ as a person 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.

Section 2(t) of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 the terms ‘person with disability’ as a person suffering from not less than forty per cent. of any disability as certified by a medical authority;

Section 2(j) of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 defines the terms ‘person with disability’ as a person suffering from any of the conditions relating to autism, cerebral palsy, mental retardation or a combination of any two or more of such conditions and includes a person suffering from severe multiple disability.

Person with severe disability

Explanation (d) to Section 80U(1) defines the term ‘person with severe disability’ as-

• A person with 80% or more of one or more disabilities, as referred to Section 56(4) of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995; or
• A person with severe disability referred to in Section 2(o) of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999

Deduction

Section 80U (1) provides that 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. Where such individual is a person with severe disability, there shall be allowed a deduction of a sum of seventy five thousand rupees.   This amount of Rs.75000/- has been increased to Rs.1 lakh with effect from 01.04.2010.

Claiming deduction

Section 80U (2) gives the procedure for claim deduction for disability or severe disability. The said section provides that every individual claiming a deduction under this section shall furnish a copy of the certificate issued by the medical authority in the form and manner, as may be prescribed, along with the return of income under section 139, in respect of the assessment year for which the deduction is claimed.

Where the condition of disability requires reassessment of its extent after a period stipulated in the aforesaid certificate, no deduction under this section shall be allowed for any assessment year relating to any previous year beginning after the expiry of the previous year during which the aforesaid certificate of disability had expired, unless a new certificate is obtained from the medical authority in the form and manner, as may be prescribed, and a copy thereof is furnished along with the return of income under section 139.

Medical Authority

Explanation (b) to Section 80U(1) defines the term ‘medical authority’ as 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 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.

Rule 11A(1) of Income Tax Rules provides that the medical authority 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, shall consist of the following:

• a Neurologist having a degree of Doctor of Medicine (MD) in Neurology (in case of children, a Paediatric Neurologist having an equivalent degree); or
• a Civil Surgeon or Chief Medical Officer in a Government hospital.

Rule 11A (2) provides that the assessee shall furnish along with the return of income, a copy of the certificate issued by the medical authority,-

(i) in Form No. 10-IA, where the person with disability or severe disability is suffering from autism, cerebral palsy or multiple disability; or

(ii) in the form prescribed vide notification No. 16-18/97-NI.1, dated the 1st June, 2001 published in the Gazette of India, Part I, Section 1, dated the 13th June, 2001 and notification No. 16-18/97-NI.1, dated the 18th February, 2002 published in the Gazette of India, Part I, Section 1, dated the 27th February, 2002 and notified under the Guidelines for evaluation of various disabilities and procedure for certification, keeping in view the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996), in any other case.

Rule 11A(3) provides that where the condition of disability is temporary and requires reassessment after a specified period, the certificate shall be valid for the period starting from the assessment year relevant to the previous year during which the certificate was issued and ending with the assessment year relevant to the previous year during which the validity of the certificate expires.