Deduction under 80GG vs Rent free accommodation exemption

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This discussion clarifies the distinction between claiming a deduction under Section 80GG and the exemption for rent-free accommodation under Section 10(10CC) of the Income Tax Act. If your employer provides rent-free accommodation, you cannot claim 80GG as you haven't paid rent. Section 10(10CC) applies when the employer pays income tax on the house perquisite, which isn't the case here. However, you can claim HRA under Section 10(13A) if you move into a rented house and pay rent yourself.

Lalit Nyati

Lalit Nyati (Querist)

08 August 2021 I want to clarity about exemption under 10 (10CC) of rent free accommodation vs deduction 80GG.
My employer give me rent free accommodation as perquisite & HRA.

How should I treat in ITR?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

08 August 2021 Treat it as perquisite in ITR.

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Lalit Nyati

Lalit Nyati (Querist)

09 August 2021 And claim u/s 10 (10CC)??

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

09 August 2021 You can't claim 80GG as you have not paid any rent.
10(cc) is exemption of income tax paid by employer on behalf of employee on house perquisite when it's not included in employees hand.

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Lalit Nyati

Lalit Nyati (Querist)

16 August 2021 But my employer not paid on behalf of me..However, he was deducted my TDS.

Am I eligible for 10 (10CC)?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

16 August 2021 Not eligible as employer not paid on behalf of you.

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Lalit Nyati

Lalit Nyati (Querist)

17 August 2021 Thank You Sir.

Lalit Nyati