Student
3986 Points
Joined July 2018
1. According to sec 80GG, rental expenses can be claimed as deductions where the assessee is not in receipt of allowances specified under sec 10(13A).
2. However, there is no restriction on claiming of deductions u/s 80GG for a person carrying on eligible business u/s 44AA and showing profit u/s 44ADA.
3. Sec 44ADA contemplates only claim of expenses u/s 30 to 38 and there are no restrictions on claiming of deductions u/s Chapter VI- A. Hence deductions u/s 80GG towards rent paid can be claimed by the assessee.
4. Deductions u/s 80GG will be lower of the following,
i) Rs. 5,000 per month
ii) 25% of the total income
iii) Actual rent paid less 10% of income.
Please correct me if the above solution has an alternative view.