What is the Income Tax Deduction available under Income Tax Act to a Person with Autism?
Income Tax Act provides benefit under section 80U, in the form a deduction from Taxable Income, to a person with Autism.
Who can avail the benefit under section 80U of the Income Tax Act, 1961?
A Resident Individual who at any time during the financial year is certified by the prescribed medical authority to be a person with disability (including Autism) can avail deduction u/s 80U of the Income Tax Act, 1961.
What is the amount of deduction allowed under section 80U of the Income Tax Act, 1961?
Amount of deduction allowed u/s 80U depends on the level of disability.
|Disability||Level of disability||Amount (Rs)|
|Normal||40% or above||75,000|
|Severe||80% or above||125,000|
This deduction is a standard deduction on the basis of eligible disability. There is no condition of payment etc.
Which disabilities are eligible for deduction under section 80U?
Disabilities eligible for deduction under section 80U are
- Celebral Palsy
- Low vision
- Leprosy cured
- Hearing impairment
- Locomotor disability
- Mental retardation
- Mental illness
What documents are required to claim this deduction?
A valid certificate from a medical authority certifying the disability is required to claim this deduction. Further, deduction can be claimed even for the year in which the certificate expires. Beyond that year, certificate is to be renewed or new certificate is to be obtained to continue claiming this deduction.
Which medical authority issues certificate needed for deduction u/s 80U?
- A Neurologist with MD in Neurology
- For children, a Paediatric Neurologist having an equivalent degree
- A Civil Surgeon or Chief Medical Officer (CMO) of a Govt. hospital
Can an NRI avail deduction under section 80U?
A non-resident (NRI, OCI etc.) cannot claim this deduction. E.g. if a person with autism, who leaves India and becomes Non-resident, he/she cannot claim this deduction. If that person comes back to India and becomes Resident, he/she can claim the deduction.
Can A Minor claim deduction u/s 80U?
According to clubbing of income provisions of Income Tax Act (Sec 64(1A)), Minor income is assessable in the hands of parents. However, according to the same provisions, if a minor earn income from child own skills/manual work then his income can be taxable in his/her own hands despite he/she is minor. Hence, in such cases, a Minor can claim deduction u/s 80U. However, parents cannot claim this deduction if any other kind of normal income is being clubbed in their hands.
What happens when disabled minor earns income not from special skills but other sources?
Income will be clubbed in the hands of parents. Hence, 80U deduction may not be relevant and parents may claim deduction under section 80DD.
How does Section 80U deduction differs from Sec 80DD Deduction?
Sec 80U deduction can be claimed by the Disabled Person himself/herself. However, Section 80DD is available for Individual/HUF who is maintaining a Disabled Dependent.
Whether filing of Income Tax Return is Mandatory for Claiming Deduction under section 80U?
Yes, deduction can be claimed by filing an ITR only.
What Are Other Important Information About Autism Tax Planning?
Kindly refer to following