House rent calculation

section-80gg

sec-80gg-income-tax-deduct-rent

80gg-rent-tax-benefit

Which condition can avail flat Rs. 5000p.m Without this calculation?

Why the Rs. 5000 for rent deduction?

80GG (Individual not receiving HRA)

Rent paid for furnished/unfurnished residential accommodation subject to following conditions:

Least of the following shall be exempt from tax:

a) Rent paid in excess of 10% of total income*;

b) 25% of the Total Income; or

c) Rs. 5,000 per month.

That is one of the condition..... max deduction u/s. 80GG is capped at Rs. 60000/- PA

Check the amount as per each condition separately......

& finally select one which is least among all three.

Example ... the eligible deduction as per condition 1 is say, Rs. 55,000/-  &

As per section 2 is say 75,000/-  and third is fixed at 60,000/-.....

So, eligible deduction u/s. 80GG is Rs. 55,000/- ......

Thank You sir.,

In case its to a business people then what...?

For Example:

i) Mr. A is salaried person. Salary Rs. 500,000. He paid Rent Rs. 60,000 (p.a). What is eligible amount u/s 80GG

i) Mr. X is business person. Profit Rs. 500,000. He paid Rent Rs. 60,000 (p.a). What is eligible amount u/s 80GG

In both the cases......the result is same (but in second case he must not be getting HRA) ..

Condition. 1. (60000/- Rent paid) - (10% of income i.e. 50000) = Rs. 10,000/-

Condition 2. (25% of income)  = 1,25000/-

Condition 3   = 60,000/-

Now least of all three is........... Rs. 10,000/- i.e. eligibility u/s. 80GG

Than You Sir.,

So, As per above no way for flat deductions if Salaried or Business...

Am I right Sir?

Correct ....

Originally posted by : Dhirajlal Rambhia
	Correct ....

Thank You sir...

Can You Give Solution for this one sir...

https://www.caclubindia.com/forum/turn-over-calculation-u-s-44ad--473794.asp