Section 80u - Tax Deduction for the Disabled Persons

GSTR 2B is a monthly reconciliation statement generated by the GST Network (GSTN) under the Goods and Services Tax (GST) regime in India. It is an important statement that helps taxpayers reconcile their monthly returns with their actual liabilities. Here’s a brief introduction to GSTR 2B:

1. Purpose: GSTR 2B serves as a reconciliation statement that helps taxpayers compare their monthly returns (GSTR 1) with their actual liabilities. It shows the actual supplies, input tax credit (ITC), and taxes paid during the tax period, which allows taxpayers to identify any discrepancies or errors between their provisional statement (GSTR 2A) and actual liabilities.

2. Timing: GSTR 2B is due for filing within ten days of the end of the month. Taxpayers can view and download their GSTR 2B statements from their GSTN accounts.

3. Content: GSTR 2B contains details of actual supplies, ITC, and taxes paid during the tax period. It shows the total output tax, ITC claimed, and net tax payable for the month, along with details of any adjustments made in the statement.

4. Filing: Taxpayers are required to file GSTR 2B on time as it serves as a reconciliation statement that helps them ensure compliance with GST laws by reconciling their monthly returns with their actual liabilities. Failure to file GSTR 2B on time may result in penalties and interest charges under the GST laws.

5. Importance: GSTR 2B is an important statement as it helps taxpayers identify any discrepancies or errors between their provisional statement (GSTR 2A) and actual liabilities. This allows them to make necessary adjustments and corrections before filing their annual returns, which can help them avoid penalties and interest charges under the GST laws.

Introduction

Section 80U of the Income Tax Act provides a tax deduction for individuals who are severely disabled or suffering from a specific disease or ailment. The deduction is available to the individual or their spouse, parents, or children. The maximum deduction allowed under Section 80U is Rs. 50,000 per annum for a maximum period of five years, unless the disability or ailment is certified as permanent by a medical authority. To claim this deduction, the individual should obtain a certificate from a recognized medical authority certifying the disability or ailment. The certificate should specify the nature of the disability or ailment and its severity. The individual should also file an income tax return (ITR) and include the deduction in their income tax computation.

What is Disability Definition Under Section 80U?

Under Section 80U of the Income Tax Act, a disability is defined as a physical or mental impairment that results in significant restrictions in performing day-to-day activities. The disability should be long-term and permanent in nature, and should have been certified by a recognized medical authority.

The following are some examples of disabilities that qualify for the tax deduction under Section 80U:

1. Blindness or low vision: A person with blindness or low vision is eligible for this deduction. Low vision refers to visual acuity not exceeding 6/60 or 20/200 (snellen) in the better eye with correcting lenses.

2. Hearing impairment: A person with hearing impairment is eligible for this deduction if they have loss of hearing beyond 60 decibels in the better ear.

3. Locomotor disability: A person with locomotor disability is eligible for this deduction if they have a limb-length constant at the least 25% more than or equal to 17 cm or a limb or a brace or an articulate joint is missing or a seriously deformed limb that restricts its movement or its functioning is severely impaired.

4. Mental retardation: A person with mental retardation is eligible for this deduction if their intelligence quotient (IQ) is 60 or below.

5. Autism spectrum disorder: A person with autism spectrum disorder is eligible for this deduction if they have a condition that falls under this spectrum, which includes difficulties in social interaction, communication, and restricted and repetitive patterns of behavior.

6. Cerebral palsy: A person with cerebral palsy is eligible for this deduction if they have an injury to the brain during birth or early childhood that results in physical and cognitive disabilities.

7. Muscular dystrophy: A person with muscular dystrophy is eligible for this deduction if they have a genetic disorder that causes progressive weakness and wasting of muscles.

8. Chronic neurological conditions: A person with chronic neurological conditions like epilepsy, multiple sclerosis, and specific learning disorders like dyslexia is eligible for this deduction if they have significant restrictions in performing day-to-day activities due to these conditions.

How to Claim for a Deduction Under Section 80U?

To claim a deduction under Section 80U of the Income Tax Act, you need to follow these steps:

1. Obtain a Disability Certificate: The first step is to obtain a disability certificate from a recognized medical authority. The certificate should specify the nature and severity of your disability. You should keep a copy of this certificate for your records.

2. File an Income Tax Return (ITR): You need to file an ITR every year to claim the deduction under Section 80U. Make sure you include the deduction in your income tax computation.

3. Mention the Deduction in Your ITR: While filing your ITR, you need to mention the deduction under Section 80U in the relevant section. You can find this section in the ITR form.

4. Provide Proof of Disability: Along with your ITR, you should provide proof of your disability, such as the disability certificate, medical reports, and other relevant documents. This will help the income tax authorities verify your claim.

5. Claim the Deduction for Five Years: The maximum period for claiming the deduction under Section 80U is five years, unless your disability is certified as permanent by a medical authority. After five years, you will no longer be eligible for this deduction.

6. Renew the Disability Certificate: If your disability is permanent, you will need to renew your disability certificate every year to continue claiming the deduction under Section 80U. If your disability is not permanent, you will need to obtain a new disability certificate every five years.

Documents Required to Claim Deduction

To claim the deduction under Section 80U, you need to have a certificate of disability from a recognized medical authority in Form 10-IA. You do not need to submit any bills or receipts for the treatment or expenses related to your disability. You can submit the certificate along with your income tax return under Chapter VI-A of the Income Tax Act. The certificate should be valid for the assessment year for which you are claiming the deduction. If the certificate has expired, you need to obtain a fresh one from the next year.

The Medical Authorities that Can Issue Certificates Under Section 80U

The Medical Authorities that Can Issue Certificates Under Section 80U are:

1. Civil Surgeon: A civil surgeon is a medical officer appointed by the government to provide medical services in a particular area. They can issue disability certificates under Section 80U for physical disabilities.

2. District Medical Officer (DMO): A DMO is a senior medical officer appointed by the government to oversee the healthcare system in a district. They can issue disability certificates for both physical and mental disabilities.

3. Chief Medical Officer (CMO): A CMO is a senior medical officer appointed by the government to oversee the healthcare system in a state or union territory. They can issue disability certificates for both physical and mental disabilities.

4. Specialist Doctors: Specialist doctors such as neurologists, orthopedists, and psychiatrists can also issue disability certificates for specific types of disabilities.

5. Government Hospitals: Government hospitals can also issue disability certificates under Section 80U, provided they have a recognized medical authority on staff who is authorized to issue these certificates.