Free Download and Prepare at a time 100/50 Employees Form 16 Part B for F.Y. 2018-19 With How to Claim Tax Benefit for Rent Paid u/s 80GG
Section
80GG is one among known sections which may be utilized by taxpayers to
reduce their tax burden by means of claiming tax exemption for lease
paid (in case HRA is not part of earnings). this Section may be used by
being both salaried/pensioner or self-hired taxpayers
Conditions for claiming tax advantage u/s.80gg for rent paid
You
can claim a tax deduction on hire paid U/s 80gg on the time of filing
tax go back best if the following conditions are satisfied:
The deduction is to be had most effective for individuals & HUFs
For a salaried individual to be eligible for tax advantage U/s 80GG, he should now not acquire HRA from his Employer.
Pensioners or self-rent do not have any H.R.A. and on the way to take benefit of 80gg
No person in the circle of relatives together with a partner, minor
children, self or HUF he is the member of must very own a residence
inside the metropolis you're Rented or carrying your commercial
enterprise.
If you own a house in a different town, you cannot show it as
self-occupied. you need to recollect it as deemed to let loose – i.e. –
you've got to reveal apartment earnings whether or not it’s truly placed
on hire.
Moreover, you need to fill shape no 10BA to
assert tax advantage U/s 80GG. this form is not to be submitted
anywhere however saved with you for statistics to reveal to i-t branch
in case of scrutiny.
Download and Prepared at a time 100 Employees Form 16 Part B for the Financial Year 2018-19
The deduction allowed U/s 80GG:
The house rent deduction is minimal of the beneath 3 numbers:
1. Rs. 5,000 in keeping with month [increased from Rs 2,000 to Rs 5,000 in Budget 2016]
2. 25% of annual earnings
3. (rent paid – 10% of annual income)
Right here annual income refers to
Gross total earnings
minus
The longtime capital benefit,
Short time period capital benefit of 10% category,
Deductions underneath sections 80c to 80u except for section 80gg and income of a foreign organization
Free Download and Prepare at a time 50 Employees Form 16 Part B for the F.Y. 2018-19
How to Calculation H.R.A. Exemption U/s 80GG
Expect
that Mr.A has an annual income of Rs 5 lakhs and he pays rent of Rs
10,000 consistent with a month. here is his tax benefit for lease paid.
1. Rs. 5,000 per month – Rs 60,000
2. 25% of annual earnings –Rs. 1,25,000
3. (Rent paid – 10% of annual income) – Rs 70,000 (1,20,000 – 50,000)
the tax deduction would be minimum of above 3 numbers = Rs 60,000
80gg in earnings tax go back shape
Tax exemption under segment 80gg is part of chapter VI-A and needs to be filled as you do for section 80c in the ITR paperwork.
Free Download Automated One by One Income tax Form 16 Part A&B and Part B for F.Y. 2018-19
Can HRA and 80GG tax gain be claimed together?
If
you were salaried receiving HRA for a few parts of the economic year
but paid hire for the entire year, you can declare benefit underneath
both HRA & U/S 80gg. for the period you acquired HRA, you must claim
tax gain on that through your Employer. For rest of the months, you'll
get tax benefit U/s.80GG.
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