Hi - If I was employed for 5 months and unemployed for the rest of the year, can I can claim HRA (for the period employed) and Section 80GG (Deduction for Rent Paid) for computing my taxes?
Can you give me a simple example of how to compute this?
Regards
You can Claim HRA...... but u ll not get the benefit of section 80GG since you are received HRA during the year
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..
CCI
Pro
CAclubindia
