80gg

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CA SONIYA AGARWAL (Querist)
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13 November 2013 kindly provide me complete detail of deduction u/s 80gg about rent paid to tenant if not being a salaried person .

CA Pallav Singhania

CA Pallav Singhania (Expert)
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13 November 2013 A self employed person or an HUF you can get deduction under section 80GG on the rent you pay if you satisfy the following conditions:

- More than 10% of your annual income is spent on rent.

- Neither you nor your spouse or a minor child owns a house at the place where you are ordinarily residing.

- If you own a house at any other place you have not been claiming tax concession on income from that house (making annual value of it nil for computing income from house property).

You would have to submit a declaration in form 10BA and enter amount while filing Income Tax Returns in order to claim this tax deduction.

Maximum deduction limit under 80GG

The least of the following three can be claimed:

- Rs. 2,000 per month

- 25% of total income (total income except from long term capital gains and after all chapter VI A deductions have been accounted for, except 80GG, of course)

- Actual rent minus 10% of total income (calculated as above)

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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13 November 2013 The person paying rent is called a tenant. Rent is being paid by him.
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Rent is paid to the landlord/ owner.
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1.Amount of rent paid by him should be in excess of 10% of his total income before deduction U/s80GG
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2. Assessee has to file a declaration in Form No 10BA. (He should keep it ready)
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3. No self occupied property should be owned by him.
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4. At the place of his work he, his relative or HUF, should not own any residential property.
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5. Criteria for Deduction
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Least of A, B and C.
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A.Rent paid in Excess of 10% of Total Income
B. 25% of Total Income
C. Rs. 2000/-per month or say for the whole year Rs 24000.
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