Deduction on rent paid

This query is : Resolved

sanjay (Querist)
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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

CA John Abraham Austin ACA

CA John Abraham Austin ACA (Expert)
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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

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
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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

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