80gg deduction

Rent was paid for 6 months only. In one of the condition in 80GG, 5000 pm is mentioned. So to calculate annual deduction, number of months should be taken as 6 (months for which rent was paid) or 12 (full year). So total deduction will be (5000*6 i.e) 30,000 or (5,000*12 i.e.) 60,000

 

The following conditions need to be met to claim deduction under this section:

• The individual should not be in receipt of any House Rent Allowance from his employer.

• The individual has filed a declaration in Form No 10BA.

• The assesse or his spouse or minor child or HUF of which he is a member, should not own any residential house property at the place where he ordinarily resides or performs office duties or causes his business or profession.

• The assesse should not own any residential accommodation in his or her own occupation, at any other place, whose value is to be determined as per Sec 23(2)(a) or Sec 23(4)(a).

In simpler words, if Mr. A, in his income tax return, claims a deduction in respect of self-occupied property and pays rent for a place in which he ordinarily resides but not of his own, he shall not be able to claim deduction under 80GG section

Quantum of deduction shall be the least of the following:

• Actual Rent paid minus 10 percent the adjusted total income.

• 5,000/- per month.

• 25% of Adjusted Total Income.