Deduction on rent paid
This query is : Resolved
13 December 2016
Hello Experts
I am a self employed. I am paying rent of Rs15000/-pm and showing the amount in my profit & loss account on account of rent paid.
As per my knowledge I can claim deduction of rent paid under Income Tax u/s 80GG.
Now my question are:
How can I claim deduction under Chapter VI?
I have showed the amount in Profit and Loss in debit side.
Please guide.
Regards
I am a self employed. I am paying rent of Rs15000/-pm and showing the amount in my profit & loss account on account of rent paid.
As per my knowledge I can claim deduction of rent paid under Income Tax u/s 80GG.
Now my question are:
How can I claim deduction under Chapter VI?
I have showed the amount in Profit and Loss in debit side.
Please guide.
Regards
13 December 2016
You can claim for sure if you're not in receipt of HRA from your employer. (You're not employed, so need not worry at all).
Since you debited the rent, which is purely personal, you need to treat it as a disallowed expense citing it as personal in nature or else, treating it as expense in P &L, show it as drawings.
Then limit for sec 80 GG per annum is- (For FY 2016-17)
1. Rs. 60,000 (12 X 5000 per month)
2. Actual rent Paid
3. Rent Paid- (10% of Gross Total Income)
whichever is less
Since you debited the rent, which is purely personal, you need to treat it as a disallowed expense citing it as personal in nature or else, treating it as expense in P &L, show it as drawings.
Then limit for sec 80 GG per annum is- (For FY 2016-17)
1. Rs. 60,000 (12 X 5000 per month)
2. Actual rent Paid
3. Rent Paid- (10% of Gross Total Income)
whichever is less
13 December 2016
You can not claim entire rent paid as expenses. While computing income Same to be added back.
You have to claim rent deduction in 80GG
You have to claim rent deduction in 80GG
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Unregistered suppliers utility
- TDS CREDIT MISMATCHING
- Buy back of shares u/s69
- Tax Audit Applicability – Newly Formed Partnership Firm with Profit Below 6%/8%
- Difference between Date of Payment and Date of Deduction?
- Same demand raised for original as well as rectification request return
- Sale of property held jointly with a non resident Indian
- ITR 4 and Bank transactions
- TDS AND ITR ISSUE
- ADDITION OF CHALLAN IN TDS RETURN FORM 140
- The TDS balance for March 26 shows a mismatch between the books and the portal; what should be done
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
