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recieved hra for part of year.How to claim 80gg exemption for next part of year

24 July 2018

i recieved hra for 3 months in a financial year.Then i switched jobs and my new employer is not giving hra.How can i get 80gg deduction for remaining 9 months.I am not able to calculate.I am living on rent throughout the FY.Please help.

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8 Replies

CA Sunil Kumar (Chartered Accountant) (4524 Points)
Replied 24 July 2018

You will be required to file Form 10BA with details of payment of rent.

Deduction –the lowest of these will be considered as the deduction under this section-

(a)    Rs 5,000 per month

(b)   25% of total Income of 9 month(income is before making a deduction under section 80GG).

(c)    Actual Rent less 10% of Income of 9 month.

2 Like

Dr.Sagar Khanna (17 Points)
Replied 24 July 2018

Thanx for reply sir.
My confusion is how to calculate adjusted gross total income for remaining 9 months for 80 gg deduction.Suppose my sallary for first 3 months is 270000.My employer gave me hra exemption benefit of 20000 for this duration.Now,for next 9 months i am not getting hra and my total sallary is 700000.My tax saving fd under 80c is 150000.My savings account interest for this whole financial year is 13000.
My monthly rent for whole FY is 11000.
What is my AGTI for 9 months and my 80gg deduction.
Is AGTI=700000(9 mnth sallary)+13000(s/a interest)-10000(80tta rebate)-150000(80c rebate).
please correct me if wrong.I am confused.

CA Sunil Kumar (Chartered Accountant) (4524 Points)
Replied 24 July 2018

You are calculating correct Total income for the purpose of deduction under section 80GG.

1 Like

Dr.Sagar Khanna (17 Points)
Replied 24 July 2018

Thank u sir.really appreciate ur help.
One last query. My employer did not gave 80gg deduction.I gave them rent agreement and reciepts on time
Was this their fault or 80gg deduction is never claimed in form 16.

CA Sunil Kumar (Chartered Accountant) (4524 Points)
Replied 24 July 2018

You can claim this deduction while filing income tax return.

1 Like

Dr.Sagar Khanna (17 Points)
Replied 24 July 2018

Employer will not give this deduction?We have to claim it ourselves only?

CA Sunil Kumar (Chartered Accountant) (4524 Points)
Replied 24 July 2018

Actually it was a default from the side of your employer. but still you are eligible for deduction under section 80GG.

Dr.Sagar Khanna (17 Points)
Replied 24 July 2018

thanx sir.Another question.In my actual case i worked on contract and got 4 months sallary from first employer.My basic sallary was rs56100 ,DA-rs2452.r ent paid-11600.Hra exemption was given to me-22980.
I was on contract,so i was not a part of any pension scheme.Still they included DA while calculating hra exemption.Why?