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1670 Points
Joined March 2008
You need to read highlighted area.
There are certain restrictions in this section. You can not claim deduction u/s 80GG if:
You receive HRA from your employer (or you received HRA from your current or previous employer at any time in the year)
You or your spouse or your minor child owns a house at the place (city / town / village) where you normally stay, work or conduct business
You are a member of a Hindu Undivided Family (HUF), and the HUF owns a house at the place where you normally stay, work or conduct business
You own a house at any other place and claim concessions of self-occupied house property for it (For example, tax benefit of a home loan for the house)
Amount of deduction under section 80GG
So, how much can you claim as deductible u/s 80GG?
The amount allowed as deduction is the minimum of the following:
Rent / lease amount paid less 10% of your total income
Rs. 2,000 per month
25% of your total income
Here, Total Income means:
Your Gross Total Income
Less long term capital gain, and short term capital gain that would be charged at a concessional tax rate (like STCG from sale of shares)
Less all deductions other than the deduction under Section 80GG