Are you a resident individual with a certified disability? TaxSpanner’s 80U Calculator helps you navigate tax deductions under Section 80U of the Income Tax Act, 1961 with ease. Use this intuitive tool to calculate your eligible tax savings and enjoy a seamless tax-filing experience.

What is Section 80U?

Section 80U offers significant tax deductions for individuals with disabilities. With this provision, disabled individuals can claim a deduction on their taxable income based on the degree of their disability:

• Normal Disability (40%-80%): Deduction of up to Rs. 75,000.
• Severe Disability (more than 80%): Deduction of up to Rs. 1,25,000.

This tax relief was designed to reduce financial challenges and support individuals in managing medical treatment, rehabilitation, and daily living expenses. A valid medical certificate from a recognized authority is mandatory to avail of this deduction.

How Does the 80U Deduction Work?

The deduction amount is fixed and not influenced by the actual expenses incurred. It covers a wide range of disabilities including:

• Blindness: Total or partial loss of vision.
• Low Vision: Impairment leading to vision less than 6/18 or 20/60.
• Hearing Impairment: Reduced hearing ability.
• Mental Illness: Disorders affecting mental well-being.
• Locomotor Disability: Restricted movement due to musculoskeletal or neurological issues.
• Mental Retardation: Limited cognitive functioning.
• Leprosy-Cured: Nerve damage or skin lesions due to leprosy.

The disability’s severity determines the eligible deduction amount.

How to Use the TaxSpanner 80U Calculator?

Calculating your eligible deduction under 80U of the Income Tax Act is simple with TaxSpanner. Follow these simple steps:

1. Access the Calculator: Visit TaxSpanner's website and navigate to the 80U Calculator under the Resources section.
2. Select Residential Status: Indicate whether you are a Resident Individual or NRI.
3. Choose the Financial Year: Pick the relevant year (e.g., 2023-24).
4. Select Tax Regime: Opt for the Old Tax Regime (applicable for Section 80U).
5. Enter Disability Details: Indicate the percentage of disability (normal or severe).
6. Calculate: Click on the calculate button to get the deduction amount.

The result instantly shows your eligible deduction, making you to plan your taxes effectively.

Example Calculation

If you are a resident individual with 40% disability, here’s what you can expect:

• Tax deduction: Rs. 75,000.
• Applicable for: Old Tax Regime.
• Certificate Required: Valid medical authority certification.

For severe disability (≥ 80%), the deduction increases to Rs. 1,25,000. The deduction remains uniform across financial years, confirming consistency in benefits.

Benefits of Using TaxSpanner’s 80U Calculator

• Accurate Results: Get precise deductions based on the latest tax laws.
• Time-Saving: Simplifies complex calculations in seconds.
• User-Friendly: Easy-to-use interface for hassle-free computations.
• Compliance Ready: Fully adheres to income tax regulations.

Section 80U vs. Section 80DD

While Section 80U benefits individuals with disabilities, Section 80DD is designed for taxpayers supporting a disabled dependent. Here’s a quick comparison:

Documentation Required for Section 80U

To claim deductions under Deduction from Section 80C to 80U, you must:

1. Obtain a valid disability certificate from an authorized medical authority.
2. Complete Form 10-IA for submission.
3. Renew the disability certificate periodically to make sure uninterrupted benefits.

Accepted certifying authorities include neurologists, civil surgeons, and Chief Medical Officers from government hospitals.

Start your journey towards smarter tax savings with TaxSpanner now!