Do you pay rent but don’t get a house rent allowance (HRA)? Don’t think you can not get any income tax benefit. You can qualify to save tax under section 80GG of the Income Tax (IT) Act if you satisfy certain conditions
Click here to Download Automated Form 16 Part B and Part A&B with Section 80GG for Govt & Non Govt Employees Income Tax preparation Excel Based Software for Financial Year 2013-14 and Assessment Year 2014-15
Click here to Download Form 10BA
But what if you are
not salaried? What if you are a businessman paying rent? Or, what if you are
salaried but do not get any HRA? Can you get any income tax benefit?
Yes, you can. You
can claim deduction of the rent paid if you satisfy certain conditions.
Who can claim deduction?
Any individual can claim the deduction u/s 80GG.
Irrespective of whether you are a salaried individual, or a business person,
you can claim deduction under Sec 80GG.
Of course, you need to be paying rent, and for your own
accommodation.
Thus, if you are paying rent for a house where your
parents live, you can not claim deduction u/s 80GG. Similarly, if you are
staying in a house but your spouse is paying the rent, you can not claim any
deduction.
You can claim deduction for either furnished or
unfurnished accommodation
Maximum Amount of deduction under section 80GG
So, how much can you claim as deductible u/s 80GG?
The amount allowed as deduction is the minimum of the following:
1.Rent / lease
amount paid less 10% of your total income
2.Rs. 2,000 per
month
3.25% of your total
income
For Claim this Tax
Exemption you must fill the Form No 10BA
