Rashmi
Quick Summary
When it comes to tax deductions for individuals living in rented accommodation, there is good news for both salaried and non-salaried individuals. While salaried taxpayers can claim House Rent Allowance (HRA) exemption, non-salaried individuals also have a provision that provides tax relief. Lets ex
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FAQ :
Individuals who do not own residential accommodation for their employment, business, or profession can claim tax relief under Section 80GG. This applies to taxpayers, their spouse, minor child, or Hindu Undivided Family (HUF) if the taxpayer is a member.
To be eligible, you must not own any residential property, and your spouse, minor child, or HUF should not own accommodation where you ordinarily reside. You also need to file a declaration in Form 10BA.
The deduction is the lowest of these three amounts: Rs 5,000 per month, 25% of your total income, or the actual rent paid minus 10% of your total income.
Salaried individuals can claim House Rent Allowance (HRA) exemption. Section 80GG is for those who do not receive HRA or are non-salaried. You can only claim one of these deductions, not both.
You need to file Form 10BA, which includes details of your rent payments, to claim the tax relief under Section 80GG.
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