Section 80GG is a generally secret section that taxpayers can use to reduce their tax burden by claiming a tax derivation for rent payable (if not part of the HRA salary). This section can be utilized by either salaried/pensioner or self-utilized taxpayer.
Terms of payment of claim The advantage of u/s 80GG for
Payment of rent
You can claim a tax derivation on U/S 80GG payable at the hour of recording tax return just on the off chance that you satisfy
the accompanying conditions:
• The markdown is just available to individuals and HUFs
To be qualified for tax advantage for Ried salaried person 80/g, he should not receive HRA from his employer.
Download Automated Revised Income Tax Form 16 Part B for the A.Y. 2020-21 [ This Excel Utility can prepare at a time 50 Employees Form 16 in Excel]
Ensure pensioners or self-utilized have no HRA and so they can take advantage of 80GG
It isn’t own a home in any city where you are utilized or carry on your business, including his significant other, minor children, self or HUF.
Different If you have a house in different urban areas, you can’t show it as self-ownership. You have to consider leaving it – that is – you have to show the rent whether the rent is paid or not.
Additionally, you should finish Form 10 to claim Tax Benefit/U/s80G. This form isn’t to be submitted anywhere yet will be kept with you for the record to be shown in the IT section for verification and determination.
Download Automated Revised Income Tax Form 16 Part B for the A.Y. 2020-21 [ This Excel Utility can prepare at a time 100 Employees Form 16 in Excel]
You are allowed a rebate of 80GG:
Least home rent rebate in 3 numbers beneath:
1. Rupees. 5,000 per month [Budget 201 increased from Rs 2,000 to Rs 2,000]
2. 25% of annual income
3. (Rent – 10% of annual income)
Long haul capital gains, 10 10% short term capital gain of the department, Section 80GG and Exemptions under Section 80C to 80U barring foreign company income Calculation u/s 80GG
1. Rupees. 5000 per month – Rs. 60,000
2. 25% of annual income – Rs. 1,25,000
3. (Rent – 10% of annual income) – Rs. 70,000 (1,20,000 – 50,000)
Least 3 numbers of tax reasoning = Rs.60,000
Download Automated Revised Income Tax Form 16 Part A&B for the A.Y. 2020-21 [ This Excel Utility can prepare at a time 50 Employees Form 16 Part A&B in Excel]
80 GG in the income tax return form
The obligation exclusion under section 80GG is a part of VI 6A and in the ITR forms, you have to fill in as required for section 80C.
Can HRA and 80GG tax benefits be claimed together?
On the off chance that you receive HRA for some part of the financial year however the rent is paid for the whole year, you can claim the advantage of both HRA and Section 80GG. For the period for which you have received HRA,
you should claim tax benefits on it through your employer. For a couple of months, you will get a tax advantage 80 GG tax advantage.
Download Automated Revised Income Tax Form 16 Part B for the A.Y. 2020-21 [ This Excel Utility can prepare at a time 100 Employees Form 16 Part B in Excel]