Section 80U Deduction For Persons With Disabilities: Key Changes And Current Rules

Section 80U Deduction for Persons with Disabilities: Key Changes and Current Rules

When it comes to tax deductions in India you usually have to show some kind of proof. Section 80U is different. If you are an individual with a disability the law gives you a fixed deduction. You do not have to show how much you spent that year. This is a relief for many families during tax season.

There is something this year. The Income Tax Act 2025 came into force on 1 April 2026. It has changed the numbers of some provisions. Section 80U is now called Section 154 of the Act. The main idea is still the same. This article will explain who qualifies, how much you can claim and what the rules are for certificates.

What is Section 80U Exactly?

Under the Income Tax Act, 1961 Section 80U allowed a resident individual with a disability to reduce their taxable income. You did not have to track your expenses or make any claims. You just got a deduction because of your disability.

The new Income Tax Act 2025 keeps this rule. If your accountant or tax portal mentions "Section 154" of "80U" it is not a mistake. It is the new number for the same benefit.

Why Does This Deduction Exist?

The costs of living with a disability can be very different for each person. Some people may need equipment or therapy. Others may need help with transportation or caregiving. Of trying to track all these expenses the government decided to give a flat deduction to people with disabilities. This is because living with a disability can be expensive and a flat deduction can help.

Who Is Eligible?

To claim this deduction, you need to meet a condition:

You need to be an individual for the tax year.

You need to have a disability certificate from an authority.

Your disability level needs to be least 40%.

Remember, this deduction is for your own disability. If someone else in your household has a disability and you are paying for their expenses that is a section.

Section 80U vs Section 80DD. What Is the Difference?

Many people get confused between these two sections. The main difference is that Section 80U is for your disability while Section 80DD is for someone you are supporting.

If you have a disability you claim under Section 154. If your spouse, child, parent or sibling has a disability and you are paying for their care you claim under Section 127.

What Counts as "Disability" and "Severe Disability"?

The Income Tax Act does not define disability. It uses the definition from disability rights laws.

A person with a disability has a certified disability of 40% or more but less than 80%.

A person with a disability has a certified disability of 80% or more.

The disabilities that are recognized include blindness, low vision, leprosy-cured status hearing impairment and many others.

How Much Can You Claim?

The amount you can claim depends on your disability level:

?75,000 for a person with a disability.

?1,25,000 for a person with a disability.

This is an amount. You do not have to show how much you spent. You just get the deduction if you have a certificate.

Conditions to Fulfil Before Claiming

Before you can claim this deduction, you need to meet a condition:

You need a valid certificate from a recognized medical authority.

The certificate needs to cover the tax year you are filing for.

You need to choose the tax regime while filing.

The Disability Certificate: What You Need to Know

A neurologist, civil surgeon or chief medical officer of a government hospital can issue the certificate. You need to keep the certificate and any reassessment paperwork safe. You do not usually need to upload the certificate while filing. You need to be able to produce it if the tax department asks.

Claiming the Deduction While Filing Your ITR

To claim the deduction, you need to:

Choose the tax regime option.

Go to the deductions schedule in your ITR form.

Locate the disability deduction section.

Mark whether you have a disability or a severe disability.

Keep your certificate and documents safe.

Examples

Let’s look at an example. Priya has a 55% locomotor disability. She can claim ?75,000 under Section 154. Rohan has a 45% hearing impairment. He can also claim ?75,000. Anjali has an 85% impairment. She can claim ?1,25,000.

Key Changes and Current Rules for FY 2026–27

Under the tax old regime nothing has changed. You still get the deduction but now it is called Section 154. Under the tax regime this deduction does not apply.

What’s different this year is the section numbering and some forms. The eligibility rules, deduction amounts and certificate requirements are mostly the same.

Mistakes Taxpayers Keep Making

Some common mistakes include:

Assuming this deduction applies to the tax regime.

Mixing up your disability claims with a dependants claim.

Letting your certificate expire without renewing it.

Not keeping records.

Asked Questions

Can you claim this deduction with other deductions? Yes, usually.

Can you get a deduction if your certificate came midway through the year? No.

Can both parents claim this deduction, for the disabled child? No.

Do you need to attach the certificate with your ITR? Not usually, but you need to be able to produce it if the tax department asks.

What happens if my certificate does not mention a reassessment date all?

Then the certificate is typically treated as valid indefinitely. There is no obligation to renew the certificate periodically.

Compliance Tips Worth Following

Renew your certificate ahead of its expiry not after you have already missed the window.

Actively select the regime while filing. Portals default to the new regime and it is easy to forget this step.

Recheck your tax liability under both regimes each year since your income and other deductions can shift.

Keep both a scan and a physical copy of your certificate somewhere you can find quickly.

When in doubt about which section applies. Yours or a dependant. It is worth a check with a tax professional rather than guessing.

Key Takeaways

Section 80U now Section 154 under the Income Tax Act 2025 offers a deduction to resident individuals with a certified disability.

The amount is ?75,000 for disability and ?1,25,000 for disability unrelated to actual expenses incurred.

The disability certificate is available under the old tax regime for FY 2026–27, not the new regime.

A valid current disability certificate from a recognised authority is non-negotiable.

Keep the disability certificate separate from Section 80DD (Section 127) which applies to dependants not to yourself.

Conclusion

The disability certificate under Section 80U. Section 154 under the new Act. Is one of those provisions that quietly does its job without demanding much from the taxpayer beyond a valid disability certificate and the right regime choice. The disability certificate does not care how much you actually spent during the year, which makes the disability certificate refreshingly uncomplicated compared to tax benefits. Keep your disability certificate current file under the regime and the disability certificate takes care of itself year, after year with the disability certificate.