Section 80U: Deduction for Individuals with Disability

Objective: Offers tax relief to residents facing significant disabilities under Chapter VI-A of the Income Tax Act. Covered Disabilities: Includes conditions like blindness, low vision, hearing impairment, mental illness, and locomotor disability.

Eligibility Criteria: Requires a minimum 40% disability certification from recognized medical authorities. Deduction Limits: Disabled Individual: Up to ₹75,000 deduction annually. Severely Disabled Individual: Up to ₹1,25,000 deduction annually.

Impact: Reduces taxable income directly, providing financial support irrespective of actual expenses incurred. Documentation: Essential to submit a valid disability certificate while filing Income Tax Returns (ITR).

Exclusions: Not applicable if opting for the new tax regime, emphasizing the importance of choosing the right tax structure.