December 14, 2018

Deduction U/s 80GG of Income Tax Act,1961

Deduction in respect of Rent paid

Conditions for claiming deductions

  • Individual {Self Employed or Salaried Employee(if he is not in receipt of House Rent Allowance)}
  • HUF(any member of HUF)
  • Taxpayer himself or spouse or minor child or HUF in which he is a member should not own any residential accommodation at the place where he carries on business or where he employs
  • If the taxpayer owns any residential house property at any other place and he is not claiming the benefit of such property as Self Occupied that property is treated as deemed to be let out.
  • He should furnish a declaration in Form No. 10BA(Click here) for the expenditure incurred by him towards Rent.

Amount of deduction

 

Deduction shall be lower of following:

  • 5,000 per month
  • 25% of total income
  • Rent Paid

Less:  10% of Total Income

Total Income:

 

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