Deduction in the case of totally blind/physically handicapped persons under the section - Scope of expression "permanent physical disability" explained - Income Tax - 246/1978

Circular No 246 Dated 20/9/1978 SECTION 8OU - TOTALLY BLIND OR PHYSICALLY HANDICAPPED PERSONS Deduction in the case of totally blind/physically handicapped persons under the section - Scope of expression "permanent physical disability" explained CLARIFICATION 1 1. Circular No. 246 [F. No. 178/37/77-IT(A-I)], dated 20-9-1978 [Clarification 2] laid down certain guidelines for the purpose of grant of deduction in the case of totally blind or physically handicapped resident persons under section 80U. 2. A large number of references have been received by the Board on the ground that these guidelines laid in the circular do not provide situation for the cases of deaf and dumb persons and mentally retarded persons, etc. 3. The matter has been examined by the Board in consultation with the Ministry of Health and Family Welfare. The Board wish to point out that Circular No. 246 is only illustrative and there could be other situations or other categories of physically handicapped, such as, deafness, dumbness and mental retardation. The facts and circumstances of each case will have to be gone into in determining whether the requirements of section 80U are fully satisfied. Circular : No. 375 [F. No. 178/17/83-IT(A-I)], dated 2-1-1984 . CLARIFICATION 2 1. The Board has been receiving numerous references from individual assessees and medical practitioners seeking clarification regarding the scope of deduction under section 80U. 2. Section 80U( ii ) provides that in computing the total income of an individual being a resident, who as at the end of the previous year is subject to or suffers from a permanent physical disability (other than blindness) which has the effect of reducing substantially his capacity to engage in a gainful employment or occupation, a deduction of Rs. 5,000 is allowed. This is subject to the condition that such individual produces before the Income-tax Officer in respect of the first assessment year for which the deduction is claimed in a case referred to in clause ( ii ) of section 80, a certificate as to the permanent physical disability from a registered medical practitioner. 3. The question under consideration is the scope of the expression "permanent physical disability". The Board has in consultation with the Ministry of Health, evolved the following guidelines for the purposes of section 80U : "Section 80U providing a deduction of Rs. 5,000 in cases of assessees computing the total income of an individual should apply if a person suffers from the following permanent physical disabilities : a. Bilateral paralysis of upper limb. b. Paralysis of dominant upper limb. c. Other paralysis of upper limb. d. Bilateral paralysis of lower limb. e. Other paralysis of lower limb. f. Paralysis of upper and lower limbs on same side. g . Paralysis of three limbs. h. Paralysis of all four limbs. i. Other paralysis of limbs. j. Other bilateral motor impairment of upper limb. k. Other motor impairment of dominant upper limb. l. Other motor impairment of upper limb. m. Other bilateral motor impairment of lower limb. n. Other motor impairment of lower limb. o . Other motor impairment of upper and lower limbs on same side. p. Other motor impairment involving three or four limbs. q. Other motor impairment of limbs. r . Transverse deficiency of arm and shoulder. s. Transverse deficiency of forearm. t. Transverse deficiency of corpus and first metacarpal. u. Transverse deficiency of thigh and pelvis. v. Transverse deficiency of leg. Essentially the transverse deficiency presents as an amputation like stump, and it may, therefore, arise, as a failure of formation of parts or as a result of surgical intervention. Besides the above, the following other orthopaedic problems should also be added: a · Cerebralpalsy with athetosis. b. Ankylosing spondylitis of both the hip joints. c . Rheumatoid arthritis involving upper limbs reducing the functional capacity to less than 30 per cent. d . Malunited fractures resulting in the functional disability of above 50 per cent. Circular : No. 246 [F. No. 178/37/77-IT(A-II)], dated 20-9-1978 .