(in case HRA is not part of salary). This section can be used by being either salaried/pensioner or self-employed taxpayers.
Conditions for Claiming Tax benefit u/s 80GG for Rent Paid
You can claim a only if following conditions are satisfied:
1. The deduction is
2. For a to be eligible for tax benefit u/s 80GG, he from his employer.
3. do not have any HRA and so they can take advantage of 80GG
4. including spouse, minor children, self or HUF he is a member of in the city you are employed or carrying your business.
5. . You have to consider it as deemed to let out – i.e. – you have to show rental income whether or not it’s actually put on rent.
Additionally, you need to fill to claim tax benefit u/s 80GG. This form is NOT to be submitted anywhere but kept with you for records to show to I-T department in case of scrutiny.
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W.B.Govt employees Salary Pattern
The deduction allowed u/s 80GG:
The House Rent deduction is minimum of the below 3 numbers:
1. Rs. 5,000 per month [increased from Rs 2,000 to Rs 5,000 in Budget 2016]
2. 25% of annual income
3. (Rent Paid – 10% of Annual Income)
Here Annual income refers to
§ Gross Total Income
§ Long Term Capital Gain,
§ Short Term Capital Gain of 10% category,
§ Deductions under sections 80C to 80U except for section 80GG and income of foreign company
Assume that Amit has the annual income of Rs 5 Lakhs and he pays rent of Rs 10,000 per month. Here is his tax benefit for rent paid.
1. Rs. 5,000 per month –
2. 25% of annual income –
3. (Rent Paid – 10% of Annual Income) – (1,20,000 – 50,000)