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
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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