When you want to purchase health insurance, it is a wise plan to learn about all the necessary details relating to it. While there are many important topics to learn about, it is also significant to understand what Section 80U is. In this context, we will help you understand the same.
Section 80U provides tax benefits if a person is experiencing a certain type of disability. Any person who has been certified as disabled by a medical authority may be entitled to this tax deduction. People with low vision, blindness, and mental illness are more susceptible to this type of tax deduction.
In case you want to learn more about it, your health insurance plans provider can assist you.
People Who Can Opt For A Tax Deduction Under Section 80U
Any individual with a minimum of 40% disability is certified by medical authorities as disabled. These are the people who can opt for a tax deduction under Section 80U.
- Loco Motor Disability: Any disability in the bones or joints of your body falls under this category. These types of problems may lead to restricted limb movements. As a result, the limbs may become stiff, difficult to move, and very painful. Speak to your health insurance plans provider to know about covers relating to this disability.
- Mental illness: This may consist of any type of severe mental disorder.
- Blind vision: The comprehensive absence of sight where there is little scope for surgery or improvement. It is best to opt for health insurance plans in this case.
- Hearing impairment: Anyone who is unable to hear properly with a hearing loss of nearly 60 decibels.
- Mental retardation: People with negatively affected subnormal intelligence levels and are experiencing restricted developments of mental abilities.
- Leprosy-cured: Individuals who are cured of Leprosy but continue to suffer from this problem. This may result in paralysis and other extreme deformities in the body.
In this Section 80U, people with major disabilities are also entitled to a tax deduction. This is inclusive of those individuals who are 80% or more disabled. This may include cases of Cerebral Palsy and Autism. Your best health insurance provider can offer more details on the same.
What is the Amount of Deduction That Occurs Under This Section For Best Health Insurance?
Individuals suffering from disabilities are entitled to a tax deduction of up to Rs. 75,000. On the other hand, people with severe disabilities may get it up to Rs. 1,25,000.
What are the Requirements to Claim this Deduction In Relation With Best Health Insurance?
A certified medical authority must provide a certificate of disability to the disabled. This is the only evidence required to claim the tax deduction under Section 80U. There are no other certificate requirements or bills to produce to incur the costs relating to the medical aspects of your life.
In case you are looking to make a claim here, it is important to submit the certificate signed by a medical authority that evidently states you are disabled. Here, you must also submit your income tax returns as required by Section 139. This is significant for relevant AY.
If your assessment certificate for the disability has reached its date of expiry, it would still be possible for you to claim a tax deduction from health insurance policy. However, it should only be done in the same year your certificate has expired. If the time increases, you may not be able to claim the tax deduction using the same certificate.
So, you will need to create a fresh certificate in order to use the benefits under Section 80U. For more details, you can contact your health insurance policy provider. They will assist you in need.
Make sure your medical authority is recognized legally to serve you as a medical authority. Apart from this, they must use the form that one can download from the website of Income Tax India. If you face any hindrances or you are unsure about anything related to this section, you can speak to your health insurance provider on time. Also, make sure your medical authority is in touch with you so that you can connect with them in case of any complication in the health form.
What is the Difference Among Section 80U and SectionDD?
Section 80DD is useful for family members looking to get tax deductions in health insurance policy. However, Section 80U is for the specific taxpayer who may have incurred a disability by themselves. Section 80DD is valid in case a taxpayer invests a certain sum of money as an insurance premium. However, the deduction limits here are the same as that of Section 80U. So, whether you have a senior member in the family, your spouse, or your children, anyone can be benefitted from deductions under this section.
What Type Of Medical Authority Can Provide A Certificate?
Only a specific type of medical authorities are eligible for issuing the disabled with the right certificate that can be useful for tax deductions. This may include:
- A CFO who comes from a Government hospital.
- A civil surgeon belongs to a Government hospital.
- A neurologist with an MD Degree in Neurology.
- A Pediatric neurologist with a neurological degree for disabled children.
The Bottom Line
The disabled can leverage this tax benefits health insurance under Section 80U. So, make sure that if you know someone who is disabled or you have a family member suffering from this illness, you help them out in the same process. Disabled individuals suffering from autism and other important disabilities may also be entitled to such tax deductions.
So, remember to help them out in need as per the same. If you are unsure about certain things, get in touch with your insurance provider right away. They will help you understand tax benefits health insurance right on time.