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80GG DEDUCTION

Ninad Pandit (CA Final Student) (254 Points)

20 June 2010

Mr. X is employed for 3months with A Ltd. where he gets HRA & for remaining 9months, he is employed with B Ltd. where he does not get HRA. Whether 80GG deduction is available to him?

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5 Replies

Anand (Chartred Accountant) (435 Points)
Replied 20 June 2010

Yes Mr.X can claim deduction under sec.80GG.

SIVASIVA (FCA, Future CA) (4935 Points)
Replied 20 June 2010

Yes, can claim exemption u/s.80GG for the 9 months period and that period ALONE.

"[Deductions in respect of rents paid.⁸²

80GG. In computing the total income of an assessee, not being an assessee having any income falling within clause (13A) ofsection 10, there shall be deducted any expenditure incurred by him in excess of ten per cent of his total income towards payment of rent (by whatever name called) in respect of any furnished or unfurnished accommodation occupied by him for the purposes of his own residence, to the extent to which such excess expenditure does not exceed two thousand rupees per month or twenty-five per cent of his total income for the year, whichever is less, and subject to such other conditions or limitations as may be prescribed⁸³, having regard to the area or place in which such accommodation is situated and other relevant considerations :

Provided

that nothing in this section shall apply to an assessee in any case where any residential accommodation is—

(i) owned by the assessee or by his spouse or minor child or, where such assessee is a member of a Hindu undivided family, by such family at the place where he ordinarily resides or performs duties of his office or employment or carries on his business or profession; or

(ii) owned by the assessee at any other place, being accommodation in the occupation of the assessee, the value of which is to be determined ⁸⁴

[under clause (a) of sub-section (2) or, as the case may be, clause (a) of sub-section (4) of section 23].

Explanation.—In this section, the expressions “ten per cent of his total income” and “twenty-five per cent of his total income” shall mean ten per cent or twenty-five per cent, as the case may be, of the assessee’s total income before allowing deduction for any expenditure under this section.]"

varun gupta (Senior Accounts Officer) (89 Points)
Replied 20 June 2010

yes mr x cal claim deduction under section 80 gg but calculation will be done for 9 months

Amir (Learner) (4016 Points)
Replied 20 June 2010

Hi friendz,

I think in this case 80GG cannot be claimed - I know its bit harsh but the language of the section does not allow to claim in the year in which assesee is in receipt of HRA. Attention is invited to the fact that 800GG no where talks about the period for which assesee should not be in receipt of HRA.

I would have agreed to what you guyz are saying if 80 GG reads somwhat like this -

In computing the total income of an assessee, not being an assessee having income falling within clause (13A) of section 10,for the corresponding period

Unfortunately Sec 80GG reads as under -

In computing the total income of an assessee, not being an assessee having any income falling within clause (13A) of section 10,