Deduction in case of a person with disability
[Section-154 as per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
Section 154(1) of Income Tax Act 2025
154(1) An individual, being resident in India, who is certified by a medical authority, at any time during the tax year, as a person with disability or person with severe disability, shall be allowed a deduction of seventy-five thousand rupees or one lakh and twenty-five thousand rupees, respectively, while computing his total income.
Section 154(2) of Income Tax Act 2025
154(2) The deduction under sub-section (1) shall be allowed only if all of the following conditions are fulfilled:––
- (a) the individual furnishes a copy of the certificate issued by the medical authority;
- (b) if the certificate specifies that the disability needs reassessment of its extent after a period stipulated in it, the deduction shall not be allowed for any tax year succeeding the tax year in which the certificate expires, unless a new disability certificate is obtained and submitted; and
- (c) the certificate referred to in clauses (a) and (b) of this sub-section shall be furnished in the form and manner, as prescribed, along with the return of income under section 263 for the tax year in which the deduction is claimed.
Section 154(3) of Income Tax Act 2025
154(3) For the purposes of this section, “disability”, “medical authority”, “person with disability” or “person with severe disability” shall have the same meanings as provided in section 127.
FAQs on Section 154 of Income Tax Act 2025
Who is eligible to claim the deduction under Section 154?
An individual who is a resident in India and is certified by a medical authority during the tax year as a person with disability or severe disability.
What is the amount of deduction allowed under Section 154?
A deduction of ₹75,000 is allowed for a person with disability, and ₹1,25,000 is allowed for a person with severe disability.
What is the meaning of ‘person with disability’ and ‘person with severe disability’ under this section?
These terms have the same meanings as defined in Section 127 of the Income Tax Act, 2025.
What is the definition of ‘medical authority’ under this section?
The term ‘medical authority’ also has the same meaning as defined in Section 127 of the Act.
Is a certificate mandatory to claim the deduction under Section 154?
Yes, a copy of the certificate issued by the medical authority must be furnished to claim the deduction.
What happens if the disability certificate has an expiry date?
If the certificate specifies that the disability needs reassessment after a stipulated period, the deduction cannot be claimed for any tax year following the expiry unless a new certificate is obtained and furnished.
In what form and manner should the disability certificate be submitted?
The certificate must be furnished in the form and manner prescribed and must be submitted along with the return of income filed under Section 263 for the relevant tax year.
Can a non-resident individual claim deduction under Section 154?
No, the deduction is available only to individuals who are residents in India during the relevant tax year.
Can the deduction be claimed if the certificate is obtained after the end of the tax year?
No, the individual must be certified during the tax year for which the deduction is claimed.
Is the deduction under Section 154 subject to actual expenses incurred?
No, the deduction is a fixed amount and is not linked to the actual expenses incurred on the disability.
Can both parents claim the deduction for the same disabled child under this section?
No, Section 154 provides deduction only to the individual who is himself or herself a person with disability, not for dependents.
Is this deduction available in addition to any other deduction under the Act?
Yes, this deduction is separate and may be claimed in addition to other eligible deductions, subject to conditions under respective sections.
Is reassessment of disability mandatory if not specified in the certificate?
No, reassessment is required only if the certificate mentions a stipulated reassessment period.
Can the deduction be claimed every year?
Yes, the deduction can be claimed every tax year provided the valid certificate conditions are met for that year.
Can a person with temporary disability claim this deduction?
No, only persons certified as having a “disability” or “severe disability” as defined under Section 127 are eligible.
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