Ok under section 80GG
There are three clauses
a) Rs 5,000 per month
b) 25% of the total Income
c) Actual Rent less 10% of Income
Lets say a person is a business man who earns 700000 and claims deduction 40000 under 80GG
a) 40000
b) 25% of income = 175000
c) 40000 - (10% of income) = -30000
Which of these is considered?
u/s.80gg it will nill (0)
Clarify whether the 40,000 mentioned by you is the rent paid for the year. also (a) should be 60,000(5000*12) and not 40,000.
The Adjusted total income should be considered here meaning Income after all the LTCG,STCG, if any and deductions under chapter VI-A other than Sec.80GG
| Originally posted by : Ramesh | ||
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So i will consider -30000? how? |  |
Yeah... It's mean Your 80GG deduction value Rs. 0. As per your rent paid value with Income value...
CAclubindia
