Regarding rent paid by the individual

ITR 349 views 2 replies

hiiiiiiii...

i have a confusion regarding rent paid by the assessee...for e.g. an individual earn a salary of 18k p.m. and pay rent

on cash basis say 5000/- p.m.. The company is not paying any allowances but deduct tds and professional tax as per the 

rules. IN THAT CASE PLS GUIDE ME REGARDING THE ITR FILING PROCESS.

 

THANKS AND REGARDS

VARDAN SINGH

Replies (2)

 

 In this case the Rent can be claimed under Section 80GG as deduction from GTI

  • Deduction is available to Individual Assessee only.

  •  

  • He has not received HRA(house rent allownace ) from his employer if he is a salaried person otherwise he should be self employed.

  • He has paid house rent for his own residence.

  • He or his spouse or his minor child or HUF(of which he has a member) should not have a residential house where he ordinarily resides or performs duties of his office or employment or carries on his business or profession;

  • He should not have a house owned by him, which is under his occupation and value of that is not being taken as nil under section 23(2)(a) or 23(4).

  • A declaration on Form 10BA should be submitted .

so if conditions are satisfied then he can claim deduction u/s 80GG for house rent paid

Amount of deduction:Least of the following is deductible u/s 80GG


 

  1. Rs 2000 per month for the Assessment year 1987-88 onwards.

  2. 25 % of total income

  3. the excess of actual rent paid over 10 % of total income

Total Income means income excluding long term and short term gain under section 111A and income referred to in section 115A or 115D but before making any deduction under section 80C to 80U

 

 

with due regards

CA Gaurav Kaushik 9828032885

 

 

THANKS SIRJEE  :-)


CCI Pro

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