rent claim deduction

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CA.GAURAV SACHWANI (Querist)
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07 July 2009 what is the maximum amount or percentage of claiming rent deduction for an individual whose total income consists of only salary income

Guest

Guest (Expert)

07 July 2009 You can claim maximum exemption as in rent, when you produce a rent receipts @ 60% of your Basic salary.

Nazir

Nazir (Expert)
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07 July 2009 it is 40% of basic salary for non metro and 50% of basic salary for metro cities...your HRA and actual rent paid also need to consider..

CA Nitin Wadhwani

CA Nitin Wadhwani (Expert)
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07 July 2009 The deduction of rent can claimed under 2 sections viz 10(13A) and 80GG.

U/s 10(13A) - If the person is in receipt of HRA.

The deduction is least of following:

1)50% of salary(if residing in metros) or else 40%.

2)HRA received.

3)Rent Paid - 10% of Salary.

Salary = Basic + DA(part which forms part of retirement benefits) + commission on turnover achieved by employee.

U/s 80GG - If the person is not in receipt of HRA.

1)25% of GTI

2)2000/- per month

3)Rent paid - 10% of GTI.

GTI = Normal GTI - LTCG u/s 112, STCG u/s 111A - lottery income - all other deductions under chapter VIA.