Income Tax Deductions for Disabled Persons Under Section 80U

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term Plan

Protect Your family’s financial future with Kotak e-Term Plan. Know more

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family. Know more

Kotak Guaranteed Savings Plan

A plan that offers long term savings and insurance in one premium. Know more

Kotak e-Invest

Insurance and investment in one plan with Kotak e-Invest. Know more

Kotak Health Shield

Insurance against medical expenses related to heart, brain, liver and Cancer. Know more

Income Tax Deductions for Disabled Person Under Section 80U

Income Tax Deductions for Disabled Person Under Section 80U
  • 9th Mar 2021 |
  • 3,017

The income tax is the tax gathered from earning citizens of a country whose income comes under the predefined tax brackets. The calculation for the income tax is done based on the yearly income and will differ depending on the income earned.

The whole process of income tax filing in India is governed by the Income Tax Act, 1961. The Act not only provides information about tax collection but also lists information about tax deductions and exemptions under various sections. Section 80U of the Act highlights information about tax deductions a citizen is eligible for if they or any member of their family suffer from certain disabilities. Any citizen who has been clinically certified as an individual with a disability can claim the tax benefit under this section.

What constitutes disability to be eligible for Income Tax Deductions under 80U?

A taxpayer suffering from at least 40 percent disability, with certification from a medical authority or institution, can be defined as disabled as per the Persons with Disability (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995. Disabilities are classified into the following 7 categories:

1. Minimal vision:

People with this condition suffer permanent visual impairment but can use their eyes with the aid of certain devices

2. Hearing impairment:

When the person’s hearing ability suffers a loss of at least 60 decibels.

3. Blindness:

A complete loss of sight, or limited vision or visual acuity, which is less than 6160 after using a corrective lens, can be labelled blindness.

4. Cured Leprosy:

Those who have recovered from leprosy but still suffer from lasting damage to their limbs and even eyes. This also applies to aged people or those with severe deformities which prevent them from taking up a valuable occupation.

5. Motor Disability:

Individuals with minimal limb movements due to the disability of the bones, muscles or joints come under this category.

6. Mental Retardation:

Individuals with an incomplete or partial development of their mental capacities that leads to subnormal intelligence come in this category.

7. Mental Illness:

This category includes individuals suffering from mental disorders or conditions that are not related to mental retardation.

Apart from the disabilities mentioned above, the act also includes a category for severely disabled individuals. Hence, the tax deduction limit will vary accordingly. If one suffers from more than 80 per cent disability or more in the above categories, then they are considered severely disabled. Disabilities like cerebral palsy and autism are included in this category.

Save Tax Now

Income Tax Deductions

under Section 80U

The deduction that a disabled individual can avail on their taxable income is up to ₹75,000. If the disabled individual suffers from 80% disability, the deduction amount is ₹1,25,000.

Considering the first example, where an individual suffers from less than 80% disability and has an aggregate income of ₹10,00,000, a deduction of ₹75,000 will bring the figure to ₹9,25,000. Hence, the tax calculation will change, as well. The table below explains how:

No deductions under Section 80U With deductions under Section 80U
Gross Total Income – ₹10 lakhs Taxable income – ₹10 lakhs Gross Total Income – ₹10 lakhs Taxable Income – ₹9.25 lakhs
Tax to be paid on income between ₹2.5 lakhs-INR 5 lakhs – 5% of ₹2.5 lakhs = ₹12,500
Tax to be paid on income between ₹5 lakhs and ₹10 lakhs – 20% of INR 5 lakhs = ₹1 lakh
Tax to be paid on income between ₹2.5 lakhs and ₹5 lakhs – 5% of ₹2.5 lakhs = ₹12,500
Tax to be paid on income between INR 5 lakhs and ₹9.25 lakhs – 20% of ₹4.25 lakhs = ₹85,000
Total tax to be paid = ₹112,500 Total tax to be paid = ₹97,500

Claiming Income Tax

Deductions under Section 80U:

If you want to register a claim, you will need to provide the medical certificate highlighting the disability. Apart from this, you will also need to provide a return of income certificate following Section 139 for the year of assessment. If your disability assessment certificate expires, you will still be eligible for claiming tax deductions in the expiry year of the certificate. However, to claim the benefits under Section 80U, you will need a new certificate from the upcoming year.

You can gather the certificates from medical authorities that are authorized by the Government of India. This can include a Civil Surgeon from any government hospital, Chief Medical Officer (CMO), a paediatric neurologist or an MD in Neurology.

Although the process of understanding tax payments can seem a bit daunting, with assistance from the tax savings guide provided by Kotak Life, your tax filing process can be smooth. This guide provides not only useful, well-researched information on how to file taxes but also different ways to lower tax liabilities

Summing up

The Income Tax Laws in India provide the benefit of tax deductions to disabled individuals under Section 80U. The individual will have to provide a certificate from an appropriate medical institution to claim these tax deductions legally. If you have any of the disabilities listed by the law, you are eligible for these deductions. To claim the benefits, you will need to provide the medical certificate, certifying the disability, and the return of income certificate.

Download Brochure


  • Increasing Life Cover*
  • Guaranteed^ Maturity Benefits
  • Enhanced Protection Through Riders
  • Tax Benefits
  • Dual Benefits: Guaranteed^Maturity + Death benefits

Ref. No. KLI/22-23/E-BB/999


Browse our library of resources

Download Brochure


  • Enhanced Protection Through Riders
  • Life Cover
  • Tax Savings
  • Multiple Premium Payment Terms
  • Guaranteed @ Loyalty Addion
  • Accrued Guaranteed @ Additions

Ref. No. KLI/22-23/E-BB/490


- A Consumer Education Initiative series by Kotak Life

Similar Articles

Income Tax Slabs and Rates in India for FY 2021-22/AY 2022-23

Section 80C Deductions as per Income Tax Act, 1961

How to File Form 10E for Tax Relief on Salary Arrears?

Problems People Face with Tax Returns after a Job Change

How to File Form 16 for Salaried Employees?

Income Tax Exemption for Physically Handicapped Dependent

Why Tax Planning Should Be an All-year Round Activity

What is the Percentage of Tax Deducted at Source (TDS)?

Tax Saving Tips: Best Ways to Save Income Tax for 2021

All about Online Income Tax Calculator

How to Save Income Tax with Insurance

Things to Do After Filing Income Tax Returns

How to Check Income Tax Refund Status Online in India

Tax Planning and Tax Benefits of Life Insurance

How to Claim TDS Refund for Excess TDS Deduction?

What is Tax Evasion and What Are The Penalties For Tax Evasion In India?

7 Important Things to Remember While Investing in a Savings Investment Plan

A Complete Guide for Filing ITR 3 Form

How To Save Tax Using Life Insurance?

All about TDS Payment Online & Due Dates

Difference Between Gross Income & Total Income in Calculating Income Tax

How to Check Income Tax Refund Status Online in India

What is the Difference Direct Tax and Indirect Tax

What is Section 10D of the Income Tax Act?

ITR-6: Guide to filing ITR-6 Form online

Tax Saving for Self Employed in India

आयकर स्लैब 2021-2022

Investing Lump Sum Amount

What is Section 80C - Explained in Detail

Difference between Section 80C and 80CCC of the Income Tax Act, 1961

What is TDS Slab?

धारा 80सी आयकर अधिनियम, 1961

Penalty For Late Filing TDS Return

Tax Saving Options for Salaried Employees

Tax-Savings Investments and Options in India

How to View 26AS and Download Form 26AS Online?

Guide for Tax Calculation on your Salary

What is Section 80C Deduction?

What is Section 195 of the Income Tax Act? TDS on Non-Residents of India

Sub-sections Under Section 80C of the Income Tax Act, 1961

E-Filing of Income Tax Returns in India

What is Section 80C Deduction Limit?

What is Form 26AS - All You Need To Know

Why January Is an Important Month for Saving Tax?

Section 16 of the Income Tax Act (ITA), 1961

What is the TDS Rate on Salary?

Tax Benefits for Startups in India

What Investment Options Come with Tax Incentives?

How to Save Tax on Salary Arrears?

Interest Imposed Under Section 234A, 234B and 234C

Form 16, Form 16A, and Form 16B?

Tax Benefit of Investing in Term Plan

What is Salary Protection Insurance and Why You Need It

Top 8 Tax-Saving Methods in India- Budget Planning

How to Download Form 16?

What are the Tax Benefits of Sukanya Samriddhi Yojana (SSY)?

Union Budget Highlights – 1st February 2022

Home Investment Plan to Buy Dream Home

Tax Benefits of ULIP Plans Available for NRIs

Financial Benefits and Government Schemes Every Woman in India Should Know

How to e-Verify your Income Tax Return

Financial Planning and Best investment options for Housewives

Pradhan Mantri Suraksha Bima Yojana

TDS Due Dates of FY 2020-21 For Return Filing

Do Beneficiaries Pay Taxes on Life Insurance?

What is ITR 5 Form and How to File ITR 5?

9 Point Guide on how to File Income Tax Return Online

How to Pay Advance Tax Online in India

Save Income Tax by 31st March: Here Is a Checklist

Difference between Section 80C, 80CCC, 80CCD & 80D

ITR 2 Form – Complete Guide

Presumptive Taxation for Business and Profession

How to Check Income Tax Returns Status Onine?

Types of Riders in Insurance Policy

Tax-Free Income in India

9 Income Tax Myths That Could Cost You Money while Filing returns

How do I Calculate My Term Insurance Premium

Received an Income Tax Notice? Your Guide to Understanding Intimations under Section 143 (1)

Section 80G of the Income Tax Act

Tax Deductions You MUST Know

9 Tax Changes in Budget 2019 that may Impact Your Personal Financial Planning

Tax Season Is Coming- Know How to Save Tax

How Much Money This Budget 2019 Can Help You Save

What is the Last ITR Filing Date and Penalty for Late Filing of ITR?

What is HRA (House Rent Allowance) and How is HRA Exemption Calculated?

Income Tax Deductions & Exemptions under Sections 80C, 80D & 80DDB for FY 2020-21 & 2021-22

What are the Different Types of Taxes in India?

How to e file ITR on Income Tax Government Portal

How to File TDS Return?

Role of Life Insurance in Your Financial Portfolio

What is Section 80CCC of the Income Tax Act 1961

Saving Income tax in 2017 - 18

How to File Income Tax Return - Everything You Need To Know

Section 10 (10d) of Income Tax Act, 1961 on Payouts of Life Insurance Policy

How can I get Form 16B from traces?

What is Form 16A?

Tax Saving Options other than Section 80C

Why is Form 16 Important?

Income Tax Filing For NRI in India

धारा 80डी आयकर अधिनियम, 1961

What is Challan 280? How to Pay your Income Tax Online with Challan 280?

Impact of GST on Life Insurance in India

LTC Cash Voucher Scheme October 2020 – Everything You Need to Know

What are Direct Taxes? How to Avoid being Overtaxed?

Guaranteed Return Plans-Why is it a must for you?

When Should TDS be Deducted and Who is Liable to Deduct it?

5 Popular Tax-Saving Schemes in India

What To Do If Your TDS Is Not Deposited With The Government?

ITR 1: Sahaj Form

Tax Saving Guide for 2019-20

A Comprehensive Guide to Understand the ITR 7 Form

Types of Income Tax Return (ITR) Forms

Tax Exemption and Scope of Coverage

Tax Structure in India

How to File Income Tax Return without Form 16

Understanding Tax Exemptions in ULIP (Old and New)

Section 80D - Medical and Health Insurance Tax Benefits Under Section 80D

Investment Proofs You Need Submit To Lower TDS Cut From Your Salary

Income Tax Exemption for Disabled

How to file Form 16 online?

How to File Income Tax Return for First Time Tax Payers

What is Form 16B?

How to Get Form 16?

What is TDS Refund Process?

What is ITR & How to File Income Tax Return

Income Tax Benefits for Doctors

How To Save Tax Better with 80C

5 Unusual Investments You Didn't Know for Saving Taxes in India

Section 80E: Tax Exemption on Interest on Education Loan

Tips to plan your savings in 2019

Are Financial Planning and Tax Planning the Same Thing?

A Guide to Life Insurance Policy’s Tax Benefits and Taxability

Income Tax Filing Using Multiple Form 16

How to File ITR Online

Income Tax Deductions Under Section 80C

Income Tax Deduction Under Section 80CCC In India

Everything You Need to Know About Tax Benefits of National Pension Scheme (NPS)

Section 44AD of Income Tax Act for AY 2020-21

Can You Get Term Insurance Without Income Proof?

What is Tax Deduction at Source (TDS)?

Budget 2019: Impact on the Common Man in India

What is the Difference between Form 16 and Form 16A?

What is TDS Exemption Limit?

52 Weeks Savings Plan: Daily Savings Plans for a Better Tomorrow

List of Important Income Tax FAQs

What Is Advance Tax and How Is It Calculated?

All You Need to Know About Section 80C

How to View 26AS and Download Form 26AS Online

Have You Considered Term Insurance a Part of Your Tax Planning?

How to save tax for salaried person?

Insurance and Endowment: Everything You Need to Know!

All about TDS on Salary under Section 192 – Kotak Life