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Can deduction under section 80gg be claimed by section 44ada professionals?

ITR 1468 views 5 replies

Can section 80gg (Rental expense) be claimed even though it is mentioned that deductions under section 30 - 38 should not be claimed for Section 44ADA?

Replies (5)
Yes... Can be claim.

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. 

Well said Mr Suresh Thiyagarajan You are Exactly Correct...
No more changes in the above said Reply...

Keep it Up...

Thank You, Sir.

Thank you Mr. Suresh and Mr. Raja.


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