Deductions: sec80gg and sec80d based queries

Sec 80GG reads as under:

"In computing the total income of an assessee, not being an assessee having any income falling within clause (13A) of section 10, there shall be deducted any expenditure incurred by him in excess of ten per cent of his total income towards payment of rent (by whatever name called) in respect of any furnished or unfurnished accommodation occupied by him for the purposes of his own residence, to the extent to which such excess expenditure does not exceed two thousand rupees per month or twenty-five per cent of his total income for the year, whichever is less, .....................................

I am not sure, but I think every member can be deemed to pay rent for their own residence and such claim can be taken. However

Under section 80GG,"expenditure incurred by him in excess of ten percent towads payments or rent is deductible"

and

further such excees expenditure should not exceed Rs. 2,000/ month or 25% of his total income of the year"

In other words, if rent paid is less than 10% of total income of individual, no deduction will be allowed.

Assuming, every member is paying Rs. 5000 rent per month, then, every member must have total income before allowing deduction of 80GG of atleast Rs. 5000*10*12 = Rs. 6,00,000. 

Aggregate premium paid for the insurance on the health of assesseee and his wife should not exceed Rs. 15,000. Aggregate premium paid for the insurance on the health of mother / father should not exceed Rs. 15,000. (Rs. 20,000 in case parents are senior citizen). Deduction for premium paid on the health of brother, shall not be allowed as "Brother" is not covered in the definition of "Family" specified in this section.

Thanks! Further, I'd like to know:

1) 80GG: While obtaining this deduction, we're required to submit a declaration in Form No.10BA. Now, does this form only has to be kept on record or does it have to submitted through return of income i.e. ITR?

2) 80D: In my example given at the start of this topic, Is there any chance that instead of the person who paid medi-claim, the members in whose name the medi-claim policy is can take deduction?

Originally posted by : Sonam Bidasaria
Assuming, every member is paying Rs. 5000 rent per month, then, every member must have total income before allowing deduction of 80GG of atleast Rs. 5000*10*12 = Rs. 6,00,000.

Did you mean that every member must NOT have total income before allowing deduction u/s 80GG of Rs.6 lac?

Because:

If he has income of 6 lac and he is paying 60000 as rent, then deduction u/s 80GG = 60000 - 10%(6 lac) = NIL

If he has income of 4 lac and he is paying 60000 as rent, then deduction u/s 80GG= 60000 - 10%(4 lac) = 20000

It was my mistake.Individuals should not have income exceeding Rs, 6,00,000.