Deduction for house rent paid U/s 80GG. Automated Income Tax Form 16 with Part A and B and Part B for the financial year 2021-22
Deduction for house rent paid U/s 80GG, the deduction for rent paid under section 80GG,
section 80GG rent payment deduction, deduction under section 80GG in relation to rent paid for some
sections in the income tax law that most of the people don't pay much attention to as they are useful in
very few cases. Section 80GG of the IncomeTax Act can be said to be one of these sections.
Section 80GG Brief information
Deduction of the rent paid for the house and only applicable to those who are self-employed or for whom HRA is not part of the salary
At least of the following is allowed as a deduction
Note: Form 10BA must be completed to request this deduction.
Deduction for rent paid under section 80GG
Under the Income Tax Act of 1961, if a person has not claimed any deductions for the rent paid for his residence in any other section, he can claim it using 80GG. For this, some other conditions must be met such as:
(1) If the person does not receive the house rental allowance from his employer or his salary does not include the house rental allowance that is eligible for exemption under section 10 (13A ) of the law, will be subject to tax on the cost of renting your home Eligible to claim the deduction. That was spent on their life in the previous year.
(2) The person submits a declaration on form no. 10BA.
(3) He himself or his spouse or minor child or HUF does not own any accommodation in the place where he habitually resides or performs the functions of his office or pursues his business or profession for which there is no residential accommodation.
(4) Anywhere else
Any residential accommodation that is a residence in a person's business, the value of which is to be determined under section 23 (2) (a) or section 23 (4) (a), as the case may be.
Deduction under section 80G:
The minimum of the following are permitted as a deduction under section 80GG of the Income Tax Act, 1961:
(1) Fee paid over 10% of total income *
(2) 25% of total income *
(3) Rs.5000 per month.
If the value owns a house in another city and uses that house for his residence and has not rented it, he cannot claim the deduction under section 80G even if he lives in a rented house. He lives and pays the rent in the place where he performs his official duties.
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