Section 154 of the Income-tax Act, 2025 — Deduction for a Person with Disability (old Section 80U)

In plain language

What Section 154 is about

Section 154 of the Income-tax Act, 2025 gives a flat deduction from total income to a resident individual who is himself or herself a person with disability. It is the re-numbered successor of Section 80U of the Income-tax Act, 1961. The idea is simple: the taxpayer who lives with a certified disability faces extra costs, so the law lets that person reduce taxable income by a fixed amount regardless of how much was actually spent.

• ₹75,000 deduction for a person with disability (disability of 40% or more).
• ₹1,25,000 deduction for a person with severe disability (disability of 80% or more).

This is a fixed (lump-sum) deduction — you do not need bills or proof of expenditure. If you qualify, you get the full amount.

Who can claim it

• Only an individual (not HUF, firm or company).
• The individual must be resident in India for the tax year. Non-residents cannot claim it.
• The disability must be the taxpayer's own. Section 154 is for a self-disabled taxpayer — it does not cover a disabled dependent (that relief sits in the separate section for maintenance of a disabled dependent, old Section 80DD).

Key conditions and the certificate

The definitions of "disability", "person with disability", "person with severe disability" and "medical authority" are taken from Section 127 of the 2025 Act, which aligns with the Rights of Persons with Disabilities framework (autism, cerebral palsy, blindness, low vision, locomotor disability, mental illness, multiple disabilities and similar recognised conditions).

• You must be certified by a medical authority at any time during the tax year as a person with disability / severe disability.
• You must furnish a copy of the certificate in the prescribed form and manner along with your return of income. Under the Income-tax Rules, 2026, the medical certificate is filed in Form No. 30 (which replaces the earlier Form 10-IA under the 1961 regime).
• If the certificate specifies a reassessment date (i.e. it expires), the deduction stops from the tax year after expiry — unless you obtain and furnish a fresh certificate. A permanent/lifelong certificate does not need renewal.

How it interacts with other provisions and the tax regime

• It is a standalone deduction — the amount does not depend on income and is not part of any combined ceiling.
• It is different from the deduction for a disabled dependent (old 80DD): 80U-type relief (Section 154) is for the taxpayer's own disability; the dependent relief is where you spend on/maintain a disabled family member. You cannot use the same disability for both under the same person.
• Tax regime caution: Under the 1961 law, disability deductions like 80U were not available under the conc+cessional new tax regime. Whether Section 154 is allowed depends on the regime you choose under the 2025 Act — confirm for your tax year, as most chapter-VIA-type deductions are restricted in the default new regime.

Practical implications

• Keep your disability certificate valid and file Form 30 with your return — a missing or expired certificate is the most common reason claims are disallowed.
• The deduction is per year and can be claimed every year the conditions are met.
• No expenditure proof is needed — the ₹75,000 / ₹1,25,000 is granted on certification alone.