What Is 80U of Income Tax Act?

If you have a certified disability, Section 80U under the Income Tax Act, 1961, gives you a straight deduction on your taxable income. In simple words, you don’t submit bills — you claim a fixed amount based on how severe your disability is.

Who Qualifies & How Much Can You Deduct?

Eligibility

• Must be a resident individual (NRIs are not eligible).
• Certified by a recognized medical authority with at least 40% disability during the financial year.
• Severe disability (80% or more) falls under a higher bracket.

Deduction Amounts

This deduction is subtracted directly from your gross income before tax is calculated — you don’t need to show medical bills or receipts.

Note: it’s available under the old tax regime (check your applicable regime before filing).

Example of How Section 80U works

Take Arjun, a marketing professional in Mumbai who earns ₹8,40,000 a year. Arjun has a 45% certified disability from a government hospital. While filing his ITR, he claims a ₹75,000 deduction under Section 80U.

This brings down his taxable income to ₹7,65,000, helping him save a good amount in taxes without needing to submit medical bills or receipts.

If Arjun had a severe disability of 80% or more, he could claim ₹1,25,000 instead, reducing his taxable income further to ₹7,15,000. That’s a simple but effective way to ease his financial load.