Latest Amended U/s 80GG have raised the limit from 2000/- to Rs. 5000/- as per Finance Bill 2016-17
· Only individual and HUF are allowed exemption under this section.
· Only individual and HUF are allowed exemption under this section.
· Only rent paid for purpose of residence of assessee himself is considered under this section.
· If an individual is a salaried employee and receives House Rent Allowance(HRA) at any time during the previous year, he is not eligible for deduction.
· The individual, his spouse or minor child (including step or adopted child) or HUF of which he is a member must not own a residential accommodation at a place where he ordinarily resides or performs duties of his office or employment or carries on his business or profession.
· Also if the assessee (only assessee not any other person mentioned above) owns a residential accommodation at any other place but claims it as a self-occupied property under head House Property, the exemption is not available under this section.
· Declaration under form 10BA is required to be filed.
Calculation of deduction:-
The amount deductible is least of the following:-
1) Rs. 2000 per month (Rs. 5,000 per month from the financial year 2016-17)
2) 25% of total income
3) Rent paid – 10% of total income
Download Automated Master of Form 16 Part B for 50 employees for the Financial Year 2016-17 [ This Excel Based Software can prepare at a time 50 employees Form 16 Part B as per the all amended tax section by the finance bill 2016-17]
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| Deductor's the main sheet |
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| Employees Salary Structure with Section wise deduction sheet |
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| Form 16 Part B |
