SECTION 80U PHYSICALLY HANDICAPPED ASSESSEE

Income tax law gives a special deduction to the persons who suffer from some kind of disability. This comes under section 80U of income tax act in which the persons who are suffering from some kind of or total disability has the special relief in income tax act. In computing the total income of an individual, being a resident, who, at any time during the previous year, is certified by the medical authority to be a person with disability, there shall be allowed a deduction of a sum of fifty thousand rupees. Provided that where such individual is a person with severe disability, the provisions of this sub-section shall have effect as if for the words fifty thousand rupees, the words seventy-five thousand rupees had been substituted. Provided further that for the assessment years beginning on or after the 1st day of April, 2010, the provisions of the first proviso shall have effect as if for the words seventy-five thousand rupees, the words one lakh rupees had been substituted.

Every individual claiming a deduction under this section shall furnish a copy of the certificate issued by the medical authority in the form and manner, as may be prescribed, along with the return of income under section 139, in respect of the assessment year for which the deduction is claimed. Provided that where the condition of disability requires reassessment of its extent after a period stipulated in the aforesaid certificate, no deduction under this section shall be allowed for any assessment year relating to any previous year beginning after the expiry of the previous year during which the aforesaid certificate of disability had expired, unless a new certificate is obtained from the medical authority in the form and manner, as may be prescribed, and a copy thereof is furnished along with the return of income under section 139. Per section (1) of section 2 of persons with disability the term disability means in regard of section 80U of income tax act means:
1. Blindness 2. Low vision 3. Hearing impairment 4. Leprosy

5. Moving disability 6. Mental retardation 7. Mental illness 8. Autism 9. cerebral palsy 10. multiple disability (more than 1 disability in this form)

SOME CONSIDERATIONS UNDER THE SECTION 80U

Hypertension is not covered - Stress and strain is inevitable when one works under pressure, as almost every one in the present day circumstances. Hypertension is not an uncommon ailment as a result of such stress. While it may reduce the capacity of the person to withstand stress, it cannot be regarded as a permanent physical disability. A certificate given by a doctor to the effect that the assessee was suffering from essential hypertension for the past ten years, that the disease was only controllable and not completely curable, and that this disease substantially reduced his working capacity, would not satisfy the requirements of section 80U

Assessee need not be unemployed or not earning anything - It is not a condition precedent for allowing deduction under section 80U that the assessee should be unemployed or should not be earning anything. Merely because the assessee is earning from some business, deduction cannot be disallowed

Person suffering from blindness of one eye is eligible - Where the record clearly demonstrated that the petitioner suffered from a permanent physical disability as regards right eye (i.e., blindness), the petitioner was entitled to claim deduction under section 80U

Once the disability falls under the items specified in the rules, further enquiry about earning capacity is not called for - Section 80U should be construed liberally, and persons handicapped must be entitled to the benefit of deduction provided for in that section if the handicap is one which is specified in the rules. Once the disability clearly fell under Rule 11D, any further enquiry as to whether the earning capacity has been adversely affected by reason of the disability was unnecessary as that factor had been taken note of by the Board

when it specified the disability as one which qualified as a disability under section 80U. It has to be presumed that the person who suffered from a specified disability would also suffer a reduction in his earning capacity by reason of that disability.