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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(Republished with Amendments))
Author Bio
SIR,
I AM A STATE GOVT EMPLOYEE(SHIKSHA KARMI) OF CG,NOT RECIEVING HRA WITH SALARY.CAN I CLAIM DEDICATION U/S 80GG,PLZ DO REPLY
Sir,
I am a state govt pensioner living in a private rented flat in Kolkata.My Landlady shows two third of the monthly amount she receives from me as license fee and rest amount as maintenance charges.
I paid more than 10 per cent of my total income as license fee during 2015-16 f.yr., moreover I got no HRA ,no residential accommodation owned by me or any of my family members in Kolkata area.But I was gifted a flat by my mother in mid 2015, the flat is in a small town & kept under lock & key.
I had submitted I.Tax return for 2015-16 f.yr.in July2016, without claiming exemption u/s 80GG.
Now kindly let me know whether I can claim exemption u/s80GG @2000/-/mth for 2015-16 f.yr.by submitting revised I Tax return now.
With regards.
R.Das
I was in Firm A till Jan and on Feb i joined Firm B. I was not getting HRA from Firm A and was planning to claim 80GG, but now i am getting HRA from Firm B. Please advise what would be best for me?
I am salaried person having work place at Saharanpur U.P. I have taken rental accommodation at Delhi for my family. i pay Rs. 8000/- p.m. for rent of that accommodation. No HRA is paid to me. May I claim exemption u/s 80GG
sir. I am not getting HRA .but i lived in government quarters.i paid per month 293₹as a maintenance and repairs. can i eligible for deduction under 80gg,? If yes how to calculate the deduction?
am not receiving any house rent from employer I am living in Sir, I am not getting any HRA from my employer but I reside in a government quarter. I pay Rs.293/- per month as a house rent recovery for maintenance and repairs. Am I eligible for taking deduction under 80GG
Sir ,
I retired and getting pension of Rs 45000 per month and my son having no job and residing with son on rental, I am paying all rent and hose experience of son in another city.rent agreement is in name my son and in rent agreement he mentioned my father mother name, I am transferring money to his account for Rent and house experience payment. Whether I will get hra exemption in tax for for last year. Rent is rs 12000 per month. Also addition 10000 pension from LIC. Not mob no 9423968866
if an assessee changes address in between,
how he will add details of both the houses in form 10BA,
please help
Income from Profit and gain from business and profession can claim deduction under section 80GG
I have not claimed HRA in my salary at all. However I paid rent every month.
Can I claim HRA and how
i am a pensioner, receiving a rent of 11000 per month. I am paying a rent 25000. how do I claim rent under section 80GG
Can I avail deduction u/s 8GG in addition to section 80C.
Pls confirm me
I am pensioner owning a house which is rented out. I have taken another house for rent.for my accommodation.. While I show rent received as income, can I claim rent exemption for the accommodation I am staying in. If yes, under which section and what is the exemption amt.
PENSIONER RESIDING IN OWN HOUSE HE IS ELIGIBLE UNDER SECTION 80 GG
NOT GETTING HRA.
Pensioners who are not getting hra ate eigible exemption under section 80gg it
Sir, I am not getting any HRA from my employer but I reside in a government quarter. I pay Rs.420/- (2% of basic pay) per month as a house rent recovery for maintenance and repairs. Am I eligible for taking deduction under 80GG.My employer issued me form no 16. He did not show the deduction under 80GG. Now can i take it while iI file my ITR.
Sir, I am not getting any HRA from my employer but I reside in a government quarter. I pay Rs.420/- per month as a house rent recovery for maintenance and repairs. Am I eligible for taking deduction under 80GG.My employer issued me form no 16. He did not show the deduction under 80GG. Now can i take it while iI file my ITR.
I am not receiving any house rent from employer I am living in govt quarter and Rs. 466/- ( 2% of my basic pay) per month deduction from my salary can I claim above deduction in u/s 80gg as deduction
I am accommodated in company accommodation for which I pay rent as per company policy (COA recovery). Under which section I can show this for tax rebate?
Hello Sir,
First of all Happy New Year and Thank you for your wonderful article!!
I’ve a query with respect to HRA. I stay with my parents and property is registered on my name.However, logically my parents are actual owners as their offline money contribution is more during Flat purchase.
My only thought process is to save tax and share benefits to parents as my dad is retired employee and mother is house wife.
Can I claim HRA tax exemption by paying rent to parents .In order to avail HRA, would rental agreement suffice or should I need to register flat against my Parent name?
I am staying in my Spouse Own House alongwith my family and paying rent for Rs.20,000/- per month. Spouse has PAN no. Shall I claim HRA.
I am on consolidated salary, i am not being paid house rent allowance by company. How much i claim deduction u/s 24 Our company allows deduction of Rs. 24000/-pa.under U/S 24 However i am paying rent Rs.84000/- pa .
Kindly advise what about such cases.
if I want to lease the house in current senario, will i need to pay tax or any other charges to income tax department for leasing of house for an amount say 10 lakh for 3 years, in cheque from the tenant?
in my salary Slip HRA or other Allowance not shown but a supplementary allowance show . How i take deduction of these allowance.
can section 80GG available for central govenment employee??
and where to file form 10BA??
My family lives in Bangalore on my house for which i am paying EMI but I am staying at chennai alone. Can i claim rent deductions while filing the IT returns. Note. I get my HRA too.
i own a house in ambala and house is self occupied. my parents are living in said house. can i claim house maintenance under 80gg
Hello Sir
Can a Husband and Wife both get a deduction u/s 80GG for the same house, if both are paying rent separately to the landlord through separate individual bank accounts?
HELLO SIR, MY INCOME FOR THE AY 2015-16 IS RS. 2,58,010 NOW I WANT TO GIVE LOAN TO MY BROTHER, HOW MUCH LOAN I CAN GIVE TO MY BROTHER.
Sir,
I changed jobs in Nov. My previous employer had hra in salary structure. My current employer does not have hra in salary structure. How do I claim hra under 80gg in this case?
Sir,
I am working in Central Govt PSU. I donot get HRA and satisfy all the condition for 80GG, But i do not pay any rent on my own but my company pays on my behalf, they calculate it as HSG Perquisites and tax that as income. So am i eligible for deduction under 80 GG
Hi! I am a professional and I get professional fees! I pay a rent of Rs. 21000/- a month! Can I avail deduction of this rent?
I had given rent receipt to my employer for claiming 50% HRA Exemption as residence in Delhi but I got a message that only 40% exemption given as working location is Gurgaon (NCT of Delhi).
Message is – The IT Exemption will be calculated based on Physical work location and not based on where the person is living or Home Town
can you please clear the applicability
sir. I have no getting HRA .but i lived in government quarters.i paid per month 460₹as a maintenance and repairs. can i eligible to getting rebate /deduction in 80GG.My employer issued me form no 16. he did not give me above rebate in 80GG. he told me that you can take this rebate when you fill return. Is these right.
please tell me.thanks
where to submit this form 10BA for HRA claim of Rs.24000?
sir,
i am working in a bank and getting lease rent from my employer of rs 11000/- p.m. but i am paying a total rent of rs 16000/- p.m. ( 5000/- from my side) ,pls guide can i get tax exemption under sec 80gg and what will be the total amount.
thank you
Sir I am posted in Jammu and and Kashmir,my family resids in Jaipur. No HRA is being granted to me. Can I avail tax exemption ( rent 5000/- and electricity & water charges extra) is It will less from gross salary.
Sir I am not availing HRA posted in J & K but my family is residing in Jaipur whereas a am paying house rent at Rate 5000/- months and electricity & water charges extra. What rule will assist me to exempt and is It will deduct from gross income
I works in govt departmet on contract with a cosolidate salary eg 25000/m and lives in a rented house , in an urban area. Am i eligeble for tax relaxation under HRA? What be the tax calculation. Plz help.
Please guide for the same of salaried employee receiving HRA
some sites suggest the following :-
Lease of the 3 cases:-
1. HRA received by the employee
2. Rent paid in excess of 10% of salary = Rent– .1xBasic
3. 50% of Basic salary (since the location of the residence is in a metro city)( 40% of your basic salary if you live in a non-metro -)
Is this right and that Rs 2000 minimum amount U said above not considered here?
Please suggest.
Hi,
I had a query on the rental house, If am staying in a rental house in another city (due to employment) and my family is staying in hometown on a Rental House again, Can I avail tax benefit by claiming rent paid in both houses? Please advise.
my father and mother (both are sr citizens ) give rent their house to bank by per month of rupees 51000.00,
i want to know that how many % are deduct from their income that bank will pay per month ?
Sir, I am not getting any HRA from my employer but I reside in a government quarter. I pay Rs.420/- per month as a house rent recovery for maintenance and repairs. Am I eligible for taking deduction under 80GG.My employer issued me form no 16. He did not show the deduction under 80GG. Now can i take it while iI file my ITR.
Let me Know the how to calculation of U/s 80GG
I am a salaried person. My wife is also working. She gets reimbursement of the rent paid and it is not shown in her form 16. The rent agreement is made in her name only. Can I claim HRA exemption on the rent paid?
Dear Sir my taxable incom-405810/-
Under 80c Invest-116200
So is there any possible for income tax deducted.
dear sir,
i am retired drawing pension, i do not have any house at my residing place, can i claim house rent deduction of 2000/- pm , towards house rent deduction, please clarify
thank you
mahesh
phone 9966000725
Sir if a person works for 4 months in company ‘A’ without receiving HRA and leave that company and joins company ‘B’ where receives HRA. now can he claim 80GG for 4 months and HRA deduction for remaining 8 months? how it has to be dealt?
I am a govt employee and have been provided with Govt quarter. But I pay some money for lic fee and furniture rent and also electric charges every month. can I claim exemption in section 80 GG.
Sir
I had been provided a leased accommodation from my employer for which some some deduction along with my HRA is being deducted by employer. Can i claim under this section 80CG ?
Reply awaited
regards
YS