Vivian Victor (5 Points)
20 March 2023I am residing in Company Leased Accommodation and total rent is Rs.13000 per month.
My employer bears Rs.10000 and remaining Rs.3000 is deducted from my salary towards rent.
The Value of Perquisites is calculated on Rs.10000 only.
Can I claim Section 80GG exemption on the Rs.3000 rent deducted from my salary?
I do not receive HRA due to Company Lease and also I do not have any other residence.
Kindly help clarify.
CA Sorav Gupta
(Chartered Accountant)
(1005 Points)
Replied 20 March 2023
Yes, you can claim 80GG. Please remember the following points as well:-
1. Deduction is allowed only under the old tax regime & not in the new tax regime.
2. A form has to be filed by the assessee to claim the deduction
3. You, your spouse, minor child, or HUF should not have any other house in that area.
In case of any further queries, kindly mail me at casoravgupta @ gmail.com
Thanks & Regards
CA. Sorav Gupta
(Practicing Chartered Accountant)
CA Rakesh Ishi
(Working at Private Company)
(8637 Points)
Replied 21 March 2023
Since you do not receive HRA due to the company lease and do not own any other residential property, you can claim the deduction under Section 80GG for the rent paid by you, which is Rs. 3,000 per month.
However, the deduction under Section 80GG is subject to certain conditions, such as:
The taxpayer must be an individual and must not receive HRA from their employer.
The taxpayer or their spouse or minor child should not own any residential property at the place where they are employed or conducting business.
The taxpayer must file a declaration in Form 10BA, stating that they have paid the rent for the accommodation and do not receive HRA from their employer.
The deduction under Section 80GG is limited to the least of the following amounts:
a. Rs. 5,000 per month
b. 25% of the total income of the taxpayer for the year
c. Actual rent paid less 10% of the total income of the taxpayer for the year
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