Hra and 80gg

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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

Replies (2)

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..


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