10 March 2010
IF INDIVIDUAL IS STAYING IN A RENTED HOUSE.AND HE IS EARNING ONLY SALARY INCOME THROUGHOUT THE YEAR. CAN RENT PAID BY HIM FOR HIS HOUSE BE ALLOWED AS DEDUCTION FROM SALARY INCOME?
10 March 2010
Deduction u/s 80-GG Shall Be Least of The Following: 1. Rs. 2000 Per Month, or 2. Excess of Rent Paid Over 10% of Adjusted Total Income, or 3. 25% of Adjusted Total Income. ADJUSTED TOTAL INCOME Means Total Income As Reduced By Long Term Capital Gain, Short Term Capital Gain Referred to In Section 111A, All Deductions u/s 80C to 80U, and Income of NRIs Referred to in section 115AC etc. Not Relevant for a Resident.
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