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Deduction under House Rent

Ankit Kaushik (8 Points)

25 July 2018

if Deduction of House Rent is not taken taken in Form 16 but has Rent agreement, Can claim while Filing ITR ?

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Dip Narayan (Deputy Manager) (777 Points)
Replied 25 July 2018

yes , u can. At the time of filing the return . If yor do not get HRA then you can avail benefit of Section 80GG. Subject to the fulfilment of the following condition:-

You are self employed or salaried
You have not received HRA at any time during the year for which you are claiming 80GG
You or your spouse or your minor child or HUF of which you are a member – do not own any residential accommodation at the place where you currently reside, perform duties of office, or employment or carry on business or profession.
In case you own any residential property at any place, for which your Income from house Property is calculated under applicable sections (as a self-occupied property), no deduction under section 80GG is allowed.
You will be required to file Form 10BA with details of payment of rent.

Deduction –the lowest of these will be considered as the deduction under this section-

(a)    Rs 5,000 per month

(b)   25% of total Income (income to exclude long-term capital gain, short-term capital gain under section 111A and Income under section 115A or 115D and deductions 80C to 80U. Also, income is before making a deduction under section 80GG).

(c)    Actual Rent less 10% of Income (income to exclude long-term capital gain, short-term capital gain under section 111A and Income under section 115A or 115D and deductions 80C to 80U. Also, income is before making a deduction under section 80GG).
Now if you get HRA from your employer then the least of the following be available for exemption U/s 10(13A)
Actual HRA received
40% of salary (50% of the salary if the rented property is in Metro City i.e. Mumbai, Delhi, Chennai or Kolkata)
Actual rent paid less 10% of salary

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Purusothaman Raja (196 Points)
Replied 25 July 2018

shall I reduce the HRA amount at the column of income head of salary ??

rama krishnan (12244 Points)
Replied 25 July 2018

if you are in receipt of HRA then you can deduct the eligible amount from your salary and declare the balance, if not you have to deduct the same under 80gg