Section 8OU l Totally Blind or Physically Handicapped Persons
Circular No. 246 was issued by the Central Board of Direct Taxes on 20 September 1978. Its subject is Section 8OU l Totally Blind or Physically Handicapped Persons.
This is a clarification. The Board is stating how it reads a provision. That reading binds the department; it does not bind a court, and where the section says otherwise the section wins.
Lays down what counts as permanent physical disability for the section 80U deduction. Section 80U(ii) gives a resident individual who at the end of the previous year suffers from a permanent physical disability, other than blindness, that substantially reduces his capacity for gainful employment or occupation, a deduction of Rs. 5,000, on producing before the Income-tax Officer, in the first assessment year of claim, a certificate of permanent physical disability from a registered medical practitioner. The Board, in consultation with the Ministry of Health, sets out a list of qualifying conditions: paralyses of the upper limbs, lower limbs, one side, three limbs and all four limbs; the corresponding other motor impairments of those limbs; and transverse deficiencies of the arm and shoulder, forearm, carpus and first metacarpal, thigh and pelvis, and leg, which present as an amputation-like stump arising from failure of formation or from surgery. It adds four orthopaedic conditions: cerebral palsy with athetosis, ankylosing spondylitis of both hip joints, rheumatoid arthritis involving the upper limbs reducing functional capacity to less than 30 per cent, and malunited fractures resulting in functional disability above 50 per cent.
The Board had been receiving numerous references from individual assessees and from medical practitioners asking what the expression 'permanent physical disability' in section 80U covers.
SECTION 8OU l TOTALLY BLIND OR PHYSICALLY HANDICAPPED PERSONS
Deduction in the case of totally blind/physically handicapped persons under the section - Scope of expression "permanent physical disability" explained1. The Board has been receiving numerous references from individual assessees and medical practitioners seeking clarification regarding the scope of deduction under section 80U.
2. Section 80U(ii ) provides that in computing the total income of an individual being a resident, who as at the end of the previous year is subject to or suffers from a permanent physical disability (other than blindness) which has the effect of reducing substantially his capacity to engage in a gainful employment or occupation, a deduction of Rs. 5,000 is allowed. This is subject to the condition that such individual produces before the Income-tax Officer in respect of the first assessment year for which the deduction is claimed in a case referred to in clause (ii ) of section 80, a certificate as to the permanent physical disability from a registered medical practitioner.
3. The question under consideration is the scope of the expression "permanent physical disability. The Board has in consultation with the Ministry of Health, evolved the following guidelines for the purposes of section 80U :
"Section 80U providing a deduction of Rs. 5,000 in cases of assessees computing the total income of an individual should apply if a person suffers from the following permanent physical disabilities :
a. Bilateral paralysis of upper limb.
b. Paralysis of dominant upper limb.
c. Other paralysis of upper limb.
d. Bilateral paralysis of lower limb.
e. Other paralysis of lower limb.
f. Paralysis of upper and lower limbs on same side.
g. Paralysis of three limbs.
h. Paralysis of all four limbs.
i Other paralysis of limbs.
j. Other bilateral motor impairment of upper limb.
k Other motor impairment of dominant upper limb.
l. Other motor impairment of upper limb.
m. Other bilateral motor impairment of lower limb.
n. Other motor impairment of lower limb.
o. Other motor impairment of upper and lower limbs on same side.
p. Other motor impairment involving three or four limbs.
q. Other motor impairment of limbs.
r. Transverse deficiency of arm and shoulder.
s. Transverse deficiency of forearm.
t. Transverse deficiency of corpus and first metacarpal.
u. Transverse deficiency of thigh and pelvis.
v. Transverse deficiency of leg.
Essentially the transverse deficiency presents as an amputation like stump, and it may, therefore, arise, as a failure of formation of parts or as a result of surgical intervention.
Besides the above, the following other orthopaedic problems should also be added:
a· Cerebralpalsy with athetosis.
b. Ankylosing spondylitis of both the hip joints.
c· Rheumatoid arthritis involving upper limbs reducing the functional capacity to less than 30 per cent.
d. Malunited fractures resulting in the functional disability of above 50 per cent.
Circular : No. 246 [F. No. 178/37/77-IT(A-II)], dated 20-9-1978.
Where a section 80U claim is disallowed for want of a qualifying certificate, or the certified condition is said not to fall within the Board's list.
Source: the Income Tax Department’s own published text — its page for this instrument.