Question 5 OR (b)
Deduction under section 80U (as set, 1961 Act, AY 2018-19)
5 marks
- Time to write
- About 10 minutes
From an older CBCS paper
Question
Question 5 OR (b) · 5 marksWrite a short note on the deduction under section 80U. (5)
Paper note: The as-set version: set and answered under the Income-tax Act, 1961 for assessment year 2018-19 (previous year 2017-18), with the dates as printed.
Reworded from the university paper; the task is the same. The original paper belongs to the University of Delhi. See DU's question bank.
Before you write
Read off the question and its marks
Read from the question
- section 80UThe section is named: open with what it says, then explain or apply it.
- short noteA note opens with the meaning, then two or three key points. No long introduction.
Write it in this order
- Read; underline the asks; jot your points 1 min
- 1 Nature and conditions 1½ marks 2 min
- 2 Amount of the deduction 1½ marks 2 min
- 3 Certificate and reassessment 1 mark 2 min
- 4 Terms used, example 1 mark 2 min
- Check: every ask answered, key terms underlined 1 min
Short on time? Trim steps 1 and 2 evenly rather than skip one: each is capped at its own marks. End with step 4 in a line or two.
Try it first. About 10 minutes for 5 marks. Write it out, then open the solution.
Solution
Hover or tap a marked figure, like 72,000, to see how it is made and where else it appears.
Section 80U gives a disabled taxpayer a deduction from gross total income for his own disability. It is a flat amount: it does not depend on what he actually spends on treatment, training or care.
- The claimant is an individual who is resident in India in the previous year; a non-resident or a Hindu undivided family cannot claim it (section 80U(1)).
- The medical authority has certified him, at some point in the previous year, as a person with disability (section 80U(1)).
| Case | Deduction for assessment year 2018-19 |
|---|---|
| Person with disability | ₹75,000 |
| Person with severe disability (80% or more of one or more disabilities) | ₹1,25,000 |
These amounts are in section 80U(1) and its proviso as substituted from assessment year 2016-17 (footnote to section 80U(1)), so they apply for assessment year 2018-19.
- A copy of the medical authority's certificate, in the prescribed form, must be furnished with the return of income under section 139 for the year of the claim (section 80U(2)).
- If the certificate says the disability must be reassessed after a stated period, no deduction is allowed for a year after the year in which the certificate expires, until a fresh certificate is obtained and furnished with the return (proviso to section 80U(2)).
The section takes its meanings from other laws (Explanation to section 80U):
- disability has the meaning in the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995, and includes autism, cerebral palsy and multiple disabilities under the National Trust Act, 1999;
- a person with severe disability is one with 80% or more of one or more disabilities under the 1995 Act, or a person with severe disability under the 1999 Act;
- the medical authority is the one under the 1995 Act, or one notified by the Central Government for autism, cerebral palsy and multiple disabilities.
A dependant's disability is dealt with by section 80DD, not by section 80U.
Ms. Anita, resident, is certified as having 50% hearing disability. Her gross total income for 2017-18 is ₹4,60,000, so she deducts ₹75,000 and her total income is ₹3,85,000. Had she been certified with 90% disability, the deduction would be ₹1,25,000 and her total income ₹3,35,000.
Where the 5 marks sit
| # | Component | Marks |
|---|---|---|
| 1 | Nature and conditions | 1.5 |
| 2 | Amount of the deduction | 1.5 |
| 3 | Certificate and reassessment | 1 |
| 4 | Terms used, example | 1 |
| Total | 5 |
Report a problemopens an email to admin@getkunji.com with the question ID1234-Q5bORalready filled in.