To give incentive to diabled persons who are earning and maintaining themselves

Deductions under Section 80U is provided of 75000 for Normal Disability and Rs 125000 for Severe Disability w.e.f FY 2014-15 (AY 2015-16)

(Earlier,the limit was 50000 for Normal Disability and Rs 100000 for Severe Disability)

This deduction only for

Individual

Resident

who is suffering from Disability

 

Amount of Deduction

Type of Disability

Amount of Deduction

Normal disability

50000  75000

Severe disability

(80% or more disability)

100000    125000

  Examples

 Q1 Suppose Mr A is a disabled person having Salary Income of 300000

Calculate,GTI,Deductions and NTI

View Answer

Q2 Solve last question assuming Mr A is non resident and suffering from disability

View Answer

Type of Disability

  • Disability should be certified by Medical Authority
  • Medical Authority shall give certificate of disability to Individual who is disabled
  • Only specified diseases covered which are same as mentioned in Section 80DDB :-
    • Blindness
    • Low vision
    • Leprosy cured
    • Hearing impairment
    • Locomotors disability
    • Mental retardation
    • Mental illness
    • Autism
    • Cerebal palsy
    • Multiple Disability

(These diseases are covered in  Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995)

Severe disability means 80% or more disability.

  1. Income Tax
  2. Amendments Income Tax for November 2016 Exams
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CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 8 years. He provides GST Training in Delhi. Register now.