Reg Sec 80GG

Tax queries 2799 views 5 replies

Jaikiran

Finance Professional

133 Points Joined January 2010

Sec 80GG is used to claim exemption for rent paid if HRA is not given by the employer.What if HRA is available in form 16 but employer had not given exemption as per sec 10 due to non submission of receipts. Can we claim Sec 80GG in this case. Also HR allowance is showing only 2400 PA though the gross salary is 2.58 Lac where basic is 66.4 K. Can we use Form 10BA and claim exemption upto 24K. Please assist.
Thanks in advance.

Replies (5)

Sunil Liladhar Kotak

Manager (F & A)

2025 Points Joined December 2008

A tax exemption is available to a salaried employee if he receives house rent allowance (HRA) as part of his compensation from his employer. The exemption is calculated as per the limits prescribed under the law. However, the maximum exemption which can be availed will be equal to the amount of actual HRA received by the employee.

For an Individual other than one receiving HRA (whether self employed or otherwise), deduction is available under Section 80GG of the Income Tax Act, 1961 for payment of rent on accommodation. In this case, however, the maximum deduction that can be availed is Rs 2,000 per month.

sunil

Amir

Learner

4016 Points Joined December 2009

Dear Jaikiran,

If a person is getting HRA then he cannot claim deduction u/s 80GG.

IF UR EMPLOYER IS NOT GIVING U BENEFIT OF EXEMPTION OF HRA...U CAN ALWAYS CLAIM WHILE FILING UR RETUEN OF INCOME, BUT U/S 10 ONLY & NOT U/S 80GG.

Jaikiran

Finance Professional

133 Points Joined January 2010

Thanks Amir for that pretty relevant answer.

So, in this case we can claim only Rs.2400 per annum under Sec 10 by following the least of the 3 rule, right?

Please let me know if there is a way to claim the actual reasonable rent paid as rent of 200 per month has no meaning.

Amir

Learner

4016 Points Joined December 2009

Dear Jaikiran,

Exemption will be caculated as follows:- Least of the following

1) HRA Received;- 2,400

2) 40%/ 50% of salary(if house is in metro city)

3) Rent paid - 10% Salary

Remember ur employer will deduct TDS by taxing the entire HRA, but u can claim exemption u/s 10 while filing return & u will be allowed ur refund on producing before the Income Tax Officer the proof of payment of rent..

deepender

ca prep

25 Points Joined July 2010

Dear Amir,

As you have mentioned that if an employee is getting HRA then he can claim rebate u/s 10 and not u/s 80GG.

I was helping a fellow to file the ITR1. But there is no colum in which he can fill the exemption under section 10 and deduct it from his salary. I want to ask how this rebate can be mentioned in ITR?

Is there a different ITR form for the employee to claim the rebate u/s 10 himslef. (Incase it it not done by employer in form 16).

and do one have to submit rent receipt while filling up the ITR. how the Income tax department will come to know how much HRA hase been deducted and on what bases it hase been doen.

Thanks for informing till now and hope to listen u soon again.

Deepender