Deduction in case of a person with disability - (New) Section 154 / (Old) Section 80U
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.... (a) Person with Disability Eligible deduction for Rs. 75,000. • (b) Person with Severe Disability Eligible deduction Rs. 1,25,000. Conditions for Availing Deduction [ Section 154(2) and Rule 61 ] • (a) the individual furnishes a copy of the certificate issued by the medical authority; • (b) if the certificate specifies that the disability needs reassessment of its extent after a period stipulated in it, the deduction shall not be allowed for any tax year succeeding the tax year in which the certificate expires, unless a new disability certificate is obtained and furnished; and • (c) the certificate referred to in clauses (a) and (b) of this sub-section is furnished....
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....not available to • non-residents or • to Hindu Undivided Families (HUFs), • firms, or • companies. • The provision is not contingent upon the actual expenses incurred by the individual; rather, it grants a flat deduction based on the existence and severity of the disability. • The person is suffering from not less than 40% of any disability given below: • Blindness • Low vision • Leprosy-cured • Hearing impairment • Locomotor disability • Mental retardation • Mental illness Quantum of Deduction • Section 80U provide for a flat deduction: • ....
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