Chartered Accountant
1489 Points
Posted on 30 March 2012
As per Section 80GG for claiming deduction u/s 80GG the assessee should be self employed person or a salaried employee.The assessee should not be in receipt of HRA u/s 10(13A)
In the instant case you are in receipt of HRA and hence you will be eligible to claim deduction u/s 10(13A) for the amount of rent paid .Since you are in receipt of HRA you will not be eligible to claim Deduction u/s 80GG.
Example :
HRA received p.m = 5,000 Rent paid = 3,500 Your salary p.m = 25,000 You live in mumbai
HRA deduction will be lower of :
1. 3500*5 (-) [25000*5] * 10/100 = 17500 - 12500 = 5000
2. 25000*50/100 = 12500
3. 5000*5 = 25000
i.e 5000
Ok..