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Deduction u/s 80GG.

Vikash Kumar (Manager Accounts (CA. Final)) (694 Points)

31 December 2012

Is rent agreement (for future reference) is sufficient for claiming deduction u/s 80GG?

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Deepak Gupta (CA Student) (15922 Points)
Replied 31 December 2012

Originally posted by : Vikash Kumar
	Is rent agreement (for future reference) is sufficient for claiming deduction u/s 80GG?

Income-Tax Rules 11B
(Conditions for allowance for deduction under section 80GG)
.
The deduction to be allowed under section 80GG in respect of any expenditure incurred by an assessee towards payment of rent for any furnished or un-furnished accommodation occupied by him for the purposes of his own residence shall be allowed subject to the condition that the assessee files the declaration in Form No. 10BA.

Attached File : 555789 1109461 form10ba.pdf downloaded: 153 times

Vikash Kumar (Manager Accounts (CA. Final)) (694 Points)
Replied 31 December 2012

No such decleration is required now, because there is no any documents to be attached with new ITR. I am asking for future reference only.

Can A.O. disallow it in absent of rent receipt which is paid in cash.

Deepak Gupta (CA Student) (15922 Points)
Replied 31 December 2012

The employee/assessee still needs to file the declaration in Form No. 10BA.

CIRCULAR NO. 8/2012 [F.NO. 275/192/2012-IT(B)], DATED 5-10-2012
.
Yes, new forms of Income Tax return are not to be accompanied with any other document but declaration should be preserved which may prove helpful during assessment proceedings and it shall be deemed to have complied with the requirement of filling the attachment.

manoj (student) (5205 Points)
Replied 31 December 2012

Section 80GG allows the employee to a deduction in respect of house rent paid by him for his own residence. Such deduction is permissible subject to the following conditions :-

(a) the employee has not been in receipt of any House Rent Allowance specifically granted to him which qualifies for exemption under section 10(13A) of the Act;

(b) the employee files the declaration in Form No. 10BA.

(c) He will be entitled to a deduction in respect of house rent paid by him in excess of 10% of his total income, subject to a ceiling of 25% thereof or Rs. 2,000/- per month, whichever is less. The total income for working out these percentages will be computed before making any deduction under section 80GG.

(d) The employee does not own:

(i) any residential accommodation himself or by his spouse or minor child or where such employee is a member of a Hindu Undivided Family, by such family, at the place where he ordinarily resides or performs duties of his office or carries on his business or profession; or

(ii) at any other place, any residential accommodation being accommodation in the occupation of the employee, the value of which is to be determined under Section 23(2)(a) or Section 23(4)(a) as the case may be.

The Drawing and Disbursing Authorities should satisfy themselves that all the conditions mentioned above are satisfied before such deduction is allowed by them to the employee. They should also satisfy themselves in this regard by insisting on production of evidence of actual payment of rent.

@VaibhavJ (Believe!! Live your dreams!) (33511 Points)
Replied 31 December 2012

Originally posted by : \|)eep @ k Gupt/\
	Originally posted by : Vikash Kumar Is rent agreement (for future reference) is sufficient for claiming deduction u/s 80GG? Income-Tax Rules 11B (Conditions for allowance for deduction under section 80GG) . The deduction to be allowed under section 80GG in respect of any expenditure incurred by an assessee towards payment of rent for any furnished or un-furnished accommodation occupied by him for the purposes of his own residence shall be allowed subject to the condition that the assessee files the declaration in Form No. 10BA.

kavitha (studying final) (830 Points)
Replied 01 January 2013

Originally posted by : \|)eep @ k Gupt/\
	The employee/assessee still needs to file the declaration in Form No. 10BA. CIRCULAR NO. 8/2012 [F.NO. 275/192/2012-IT(B)], DATED 5-10-2012 . Yes, new forms of Income Tax return are not to be accompanied with any other document but declaration should be preserved which may prove helpful during assessment proceedings and it shall be deemed to have complied with the requirement of filling the attachment.