Seeking assistance - income tax filing

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KANISHKA SARKAR (Querist)
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24 June 2018 My friend, aged 70 years, he is 100% blind as per the disability certificate issued by National Medical College and L.V.Prasad, Hyderabad. He is staying in a rented house paying annually INR 84, 000/-as rent.The rented house is in the name of his married daughter. He is drawing pension amounting to INR 2,74,130/- p.a. Moreover, his income from other sources (interest income from non-tax saving fixed deposits – as per 26 AS) is INR 3,05,347/- p.a. Therefore, gross total income is INR 5, 79,477/- .
Is the rent paid by him eligible for deduction from income? He does not draw any HRA and he does not have his own house and no income from house property.

Computation of income tax liabilities for the F.Y. 2017-18 relating to A.Y. 2018-19
Particulars Amount (Rs.)
01. Pension income 274,130.00
02. Income from other sources 305,347.00
Gross Total Income 579,477.00
Less, Deduction as per section 80U (Severe Disability) 125,000.00
454,477.00
Less, Deduction as per section 80GG (Rent Paid)
Least of the following
1. Rs. 60, 000 per year (5000x12)
2. Total rent paid minus 10% of the total income
(84,000-45,448) = Rs. 38,552
3. 25% of total income Rs. 1,13,619 38,552.00
Total Income 415,925.00

Tax payable on total income
(4,15,925 - 3,00,000) = 1,15,925 X 0.05
5,796.25
Rebate u/s 87A -
Tax after rebate 5,796.25
Cess 173.89
Total Tax 5,970.14

Nikhil Kaushik

Nikhil Kaushik (Expert)
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24 June 2018 if he is paying rent to his daughter, then he can make the claim under 80GG

CA Mohit Kumar

CA Mohit Kumar (Expert)
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24 June 2018 you can claim deduction under section 80GG towards rent that you pay. Here are a few conditions that must be fulfilled – You are self employed or salariedYou have not received HRA at any time during the year for which you are claiming 80GGYou or your spouse or your minor child or HUF of which you are a member – do not own any residential accommodation at the place where you currently reside, perform duties of office, or employment or carry on business or profession.In case you own any residential property at any place, for which your Income from house Property is calculated under applicable sections (as a self-occupied property), no deduction under section 80GG is allowed.

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