Deductions is respect of rents paid : Under Section 80GG, an Individual can claim deduction for the rent paid even if he don’t get HRA. Not many people are aware of this deduction Under Section 80GG.
Section 80GG allows the Individuals to a deduction in respect of house rent paid by him for his own residence. Such deduction is permissible subject to the following conditions :-
(a) the Individual has not been in receipt of any House Rent Allowance from his employer specifically granted to him which qualifies for exemption under section 10(13A) of the Act;
(b) the Individual files the declaration in Form No. 10BA.
(c) The employee does not own:
(i) any residential accommodation himself or by his spouse or minor child or where such Individual is a member of a Hindu Undivided Family, by such family, at the place where he ordinarily resides or performs duties of his office or carries on his business or profession; or
(ii) at any other place, any residential accommodation being accommodation in the occupation of the Individual, the value of which is to be determined under Section 23(2)(a) or Section 23(4)(a) as the case may be.
(d) He will be entitled to a deduction in respect of house rent paid by him in excess of 10% of his total income, subject to a ceiling of 25% thereof or Rs. 2,000/- per month (Rs. 5000/- wef F.Y. 2016-17), whichever is less. The total income for working out these percentages will be computed before making any deduction under section 80GG. In other word eligibility will be least amount of the following :-
1) Rent paid minus 10 percent the adjusted total income.
2) Rs 2,000 per month (Rs.5000/-wef F.Y. 2016-17).
3) 25 percent of the adjusted total income.
The deduction under section 80GG will also not be available to an assessee if any residential accommodation is owned by the assessee at any other place, which he is occupying, and the concessions in respect of self-occupied house are claimed by him for that property. In such a case, no deduction will be allowed in respect of the rent paid, even if the person does not own any residential accommodation at the place where he ordinarily resides.
What is the adjusted total income under section 80GG?
The adjusted total income means :-
Gross Total Income
Less
Long Term Capital Gain,
Short Term Capital Gain of 10% category,
Deductions under sections 80C to 80U except section 80GG and income of foreign company.
Conclusion-Limit under Sec. 80GG has not kept pace with the limits under Sec. 10(13A) obviously because the limit under Sec. 10(13A) could be subject matter of revision by notification, while the limit under Sec. 80GG is stipulated in the statute itself so that an amendment to law would be required for enhancing the limit.
Download Format of FORM NO. 10BA
Extract of section 80GG
Section – 80GG, Income-tax Act, 1961-2014
Deductions in respect of rents paid.
80GG. In computing the total income of an assessee, not being an assessee having any income falling within clause (13A) of section 10, there shall be deducted any expenditure incurred by him in excess of ten per cent of his total income towards payment of rent (by whatever name called) in respect of any furnished or unfurnished accommodation occupied by him for the purposes of his own residence, to the extent to which such excess expenditure does not exceed [five] thousand rupees per month or twenty-five per cent of his total income for the year, whichever is less, and subject to such other conditions or limitations as may be prescribed, having regard to the area or place in which such accommodation is situated and other relevant considerations :
Provided that nothing in this section shall apply to an assessee in any case where any residential accommodation is—
(i) owned by the assessee or by his spouse or minor child or, where such assessee is a member of a Hindu undivided family, by such family at the place where he ordinarily resides or performs duties of his office or employment or carries on his business or profession; or
(ii) owned by the assessee at any other place, being accommodation in the occupation of the assessee, the value of which is to be determined under clause (a) of sub-section (2) or, as the case may be, clause (a) of sub-section (4) of section 23.
Explanation.—In this section, the expressions “ten per cent of his total income” and “twenty-five per cent of his total income” shall mean ten per cent or twenty-five per cent, as the case may be, of the assessee’s total income before allowing deduction for any expenditure under this section.
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I get HRA of 45K while I pay rent for 60K.
Can I claim under 80GG?
If yes, which amount?
Can I claim under section 80GG, if my employer doesn’t give HRA, but provides accommodation for which he was adding 10% of my salary as perquisites in taxable income.
paying Rs8000 per month as house rent but in form 16 it’s mentioned Rs 6000 per month,how to claim it in income tax return
Hi Sandeep, Thanks for this very nice article which summarizes very well most questions. My question is – can I claim section 80GG for months that I was NOT working? I realize that the 10% of income or 25% of income would be zero because income is zero. In fact, is there any benefit for those not working as tax relief.
How to claim deduction of Rent paid in case of an individual retired during the financial year 2019-20 where such individual is residing in company quarter before retirement.
I am living on rental basis for which rent is Rs 6000 per month (leased accommodation 16000, 10000 paid by my bank and 6000 by me) and have not received HRA from my employer.
One house property in different city has been transferred by my grandfather in my name and transfer deed has been executed.
Can i claim deduction under section 80 GG
I got rs 96000/ per annum HRA. I live at rent and paid 99600 per annnum.
1. how many amount qualify for exemption u/s 13a of 10.
2. can I got benefit u/s 80GG too?
I want to show INR1lac as my rent for the entire financial year 2018-19. But, I do not have any rent receipt. Shall this amount be considered as tax deduction u/s 80GG? Please clarify.
Sir,
I get HRA of Rs. 38400/year. But I pay house rent Rs.17100/year. Since my HRA from office is far lower than the actual HRA I pay in Chennai, can I use 80GG to get HRA deduction of Rs.6000/-. Please clarify.
whether both husband and wife can claim rent paid in case of no HRA component u/s 80 gg by splitting their total rent amount….
I am not a salaried employee but i receive money as a contract employee. I bill for the number of days worked and i get the money for the same with 10% TDS. My question is whether i will be eligible for deductions under 80GG
Please clarify
Can a person staying in a rented house but not on monthly rent but on a lease for 5years with a total amount of 1500000 .can I claim rent deduction u/s 80GG with a notional rent or a fair rent equating a percentage of interest lost on the amount invested with the landlord..
Sir, I have a query as same:
Que 1: rent paid by me is more than the rental income earned by me, am I eligible for 80GG and how much?
Que 2: My parents residing in different city and they constructed 2nd floor for which I am paying the loan/interest, though loan is on my Father’s name and I am the only son. He is retired employee. Please let me know in this case , if I am eligible for applying house interest deduction?
Mam, Your article is impressive. Mam I am working big brand steel industry. My salary is 100000/- month. I have faced some problems regarding HRA.
1 Case: When I am residing “Alone” outside company’s colony and paid rental amount of Rs.8000/- month. I have own one house in other city where my family resides. I have also taken home loan. Company given HRA benefit of Rs.5000/- and mention in Form 16. In ITR House property column can I mention “Self Occupied”? If I have mentioned “ Letout” in ITR can I show the rental amount and pay the tax?
2 Case: When I am residing “Alone” in a Company’s “Bachelor Hostel” and Company deducts an amount of Rs.5000/- month. Company does not provide any HRA benefit and also not shown that amount in Form 16. I have own one house in other city where my family resides. I have also taken home loan. In that case my salary is Rs.100000 – 5000 = Rs.95000/-month. Can I claim or taken benefits from 80 GG? Also in ITR House property column can I mention “Self Occupied”? If I have mentioned “ Letout” in ITR can I show the rental amount and pay the tax?
3 Case: When I am residing “Alone” in a Company’s “Family Accommodation or 2 BHK Furnished Flat” and Company deducts an amount of Rs.5000/- month. Company does not provide any HRA benefit and also not shown that amount in Form 16. I have own one house in other city where my family resides. I have also taken home loan. But some points Company mention in Form 16 as given below.
Salary 95000/- * 12 = 1140000/-
Perquisites = 60000/-
Total = 120000/-
In that case also my salary is Rs.100000 – 5000 = Rs.95000/-month.
Can I claim or taken benefits from 80 GG? Also in ITR House property column can I mention “Self Occupied”? If I have mentioned “ Letout” in ITR can I show the rental amount and pay the tax?
4 Case: Same as in case 3 only difference is that I have Two own house in different city and my family resides there. If I have mentioned “ Letout” in ITR can I show the rental amount and pay the tax?
Kindly suggest me and provide me exact solution of my problem.
Dear Sir, I have my own house and I am claiming HOME LOAN benefits as per income tax rule. I was also claiming HRA under 80 GG as I was living in another city for official purpose.
This financial year I have been transferred to the location which is 45 Km away from the location where my home is situated but my office comes in different district and homes in another.
I have taken small rented house too near by my office for convenient , can I claim HRA ?
What to do if 1st condition goes nagative balance.
that is rent paid minus 10% total income.
how to claim 80Gg deduction
Sir
I want to do NGO`s 80g online what can I do?
Please explain….
The rent paid by me is more than the rental income earned by me.
I am retired person living on pension. I have rented out my own 1bhk and moved to 2bhk on rent. I am showing my rental income in ITR with relevant deductions. Can I claim benefit under section 80gg for the rent paid by me for my present rental house.
I am not getting any HRA from employer and my monthly salary is 60000/-. I am paying monthly House rent 6500/- . m I eligible to claim HRA if I am not getting any HRA from employer.
We are retired couple both getting pension
We are living with our daughter who is a house wife.we have a house in other city which is rented.
Can we claim minimum Rs.5000 per month in section 80 GG while computing the tax.
I have received HRA in railway I have claim sec.80GG in tax or not.
sir/ma’am,
Can I take rebate off section 80GG if I have received HRA for only 3 months? I want to take the rebate off section 80GG for rest 09 months.
1. I AM GETTING HrA which is included in pay slip. i have not been provided with govt accommodation. should it be a deducted from gross salary
2. I am also getting ration money, which is also included in pay slip. where should i deduct it.
3. I also got children education allowance in pay slip. is it also deductable from gross salary
Sir,
How to file form 10BA while submitting the ITR online?
हेलो सर,
मैं गोवारमेंट एम्प्लोयी हूँ और मुझे सरकारी क्वार्टर मिला हुआ है . तो क्या मुझे जरुरी है ITR के इनकम details में रेंट पेड (rent Paid) 80 GG भरना ? कृपया बताने का श्रम करें I धन्यबाद
Can both husband &wife claim rebate against section 80GG after retairement
while living with their daughters at Mumbai or Delhi. Though rent is not paid but indirectly I.e. electric water gas bills besides minor house repairs etc.are paid by us.
A retired person (tax payer) getting monthly pension is residing in a rented house accommodation. Can the retired person avail any HRA Rebate/Exemption
I’m an NRI.
I own 3 properties in Chennai and all of them were let out for rent.
Last year my family relocated to Chennai and are staying in a rented house.
Can I claim deduction under section 80GG?
i am getting remuneration from from my own firm can i eligible for 80gg deduction
great article.keep it up
मेरा बालक इंदौर मे रह कर पढ़ाई कर रहा है मुझे वेतन मे HRA नही मिलता है क्या मै HRAपर टैक्स क्लेम कर सकता हु
Sir,
i just want to know that normally i can save 150000 under 80c(LIC, PPF,PF,NSC etc) and under 80GG upto 60000/-. Okey, so if i am living on leased license house (LL) and if i am clamming rebate under 80GG then what will happened.
Can i do this when i am filing ITR?
For a central govt employee can d employer or d head of d office can insist for d rental agreement for claiming hra for income tax purpose of course pan card is essential
Dear sir,
I doing CWA inter so for 2017 june exam under 80GG which minimum amount applicable for month 5000 or 2000 ?
Where and how should I file FORM 10BA in case I eFile my ITR?
I have been provided rental accomodation which is taxable perquisites. The rent is being paid by my employer directly to the lessor. May I claim exemption in 80GG?
HI Iam parthi how to claim HRA and LTA
i earn rent income in same state but working on different city and paid rent also. so can i claim 80GG
Dear Sir,
I do not draw HRA from my DPSU employer and i stay in a self leased accommodation
1] i draw a self lease amount monthly instead of HRA
2] an additional amount of close to 1.2 Lakh is added to my income as perks for purpose of calculating gross salary as per form 16.
can i claim this U/s 80GG. if yes how?
i am a pensioner and my gross income for the year
2016/17 is about six lakhs after deduction of
3 lakhs and 1.5 lakhs under 80 (cc) the net taxable
income wiill be 2.5 lakhs. kindly let me know about
the eligibility up what extent i will get under 80 gg
i am paying rent 6000 per month.
expecting your reply.
Dear sir,
I am getting HRA of 2265 Rs /Month which is reflecting in my Pay slip.
I am also getting House rent 8500 Rs/Month which is directly credited by my company to my house owner’s Bank account.
in form 16 it is showing under perquisites which is 100% taxable. But I am not getting this & company is paying to house owner directly.
please suggest how to save tax on house rent
Regards,
Rahul S.K