WHO ARE NOT GET HOUSE RENT FROM HIS EMPLOYER, HE CAN CLAIM HOUSE RENT EXEMPTION U/S 80GG

Section 80GG

The tax Deduction amount under 80GG is Rs 60,000 per annum. Section 80GG is applicable to all those individuals who do not own a residential house & do not receive HRA (House Rent Allowance).

On October 17, 2019 by www.taxexcel.net

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WHO ARE NOT GET HOUSE RENT FROM HIS EMPLOYER, HE CAN CLAIM HOUSE RENT EXEMPTION U/S 80GG

Section 80GG

The Tax Deduction amount under 80GG is Rs 60,000 per annum. Section 80GG is applicable to all those individuals who do not own a residential house & do not receive HRA (House Rent Allowance).

On October 16, 2019 by www.taxexcel.net

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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 

On March 14, 2019 by www.taxexcel.net

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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 

On February 17, 2019 by www.taxexcel.net

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 Download Automatic House Rent Exemption Calculator

Under Section 80GG, an Individual can claim the deduction for the rent paid even if he does not get House Rent Allowances. Not many people are aware of this deduction.

Section 80GG allows the Individuals to a deduction in respect of house rent paid by him for his own residence.
Such deduction is permissible subject to the following conditions:-

• The Individual has not been in receipt of any House Rent Allowance from his employer specifically granted to him which qualifies for exemption under section 10(13A) of the Act;
• The Individual files the declaration in Form No. 10BA. Download Excel Based Form 10 BA
• The employee does not own:

1.  A)  any residential accommodation himself or by his spouse or minor child or where such Individual is a member of a Hindu Undivided Family, by such family, at the place where he ordinarily resides or performs duties of his office or carries on his business or profession; or

B ) at any other place, any residential accommodation being accommodation in the occupation of the Individual, the value of which is to be determined under Section 23(2)(a) or Section 23(4)(a) as the case may be.

• He will be entitled to a deduction in respect of house rent paid by him in excess of 10% of his total income, subject to a ceiling of 25% thereof or Rs. 2,000/- per month, whichever is less. The total income for working out these percentages will be computed before making any deduction under section 80GG. In other words, eligibility will be the least amount of the following:-

2)

1. Rent paid minus 10 percent the adjusted total income.
2. Rs 2,000 per month.
3. 25 percent of the adjusted total income.

• The deduction will also not be available to an assessee if any residential accommodation is owned by the assessee at any other place, which he is occupying, and the concessions in respect of self-occupied house are claimed by him for that property. In such a case, no deduction will be allowed in respect of the rent paid, even if the person does not own any residential accommodation at the place where he ordinarily resides.

On September 01, 2018 by www.taxexcel.net

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The Income Tax Section Under Section 80GG where allow the House Rent Exemption Maximum Rs. 60,000/- P.A. and 5000/- P.M. who have not get the House Rent allowances from the employer. The Section 80GG says, in brief, is given below:- 

On March 11, 2018 by www.taxexcel.net

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The Income Tax Section Under Section 80GG where allow the House Rent Exemption Maximum Rs. 60,000/- P.A. and 5000/- P.M. who have not get the House Rent allowances from the employer. The Section 80GG says, in brief, is given below:- 

On March 04, 2018 by www.taxexcel.net

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On July 16, 2017 by www.taxexcel.net

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The Income Tax Section Under Section 80GG where allow the House Rent Exemption Maximum Rs. 60,000/- P.A. OR 5000/- P.M. who have not get the House Rent allowances from the employer. The Section 80GG says in brief is given below:- 

Download Private employees Income Tax Preparation Excel Based Software For F.Y2017-18 & A.Y. 2018-19 [This Utility can prepare at a time your Income Tax Calculated Sheet + Individual Salary Structure as per the any Private Employees Salary Structure / Non Govt Concerned for calculate the Gross Salary Amount + Automatic House Rent Exemption Calculation + Form 12 BA + Automated Form 16 Part B and Part A&B for the Financial Year 2017-18 and Assessment Year 2018-19 this Excel Utility only for Private Employees. This Excel Utility prepare as per the Finance Budget 2017-18 with all amended Income Tax Section with New Tax Slab for F.Y.2017-18]

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Details of Income Tax Section 80GG :-

Section 80GG allows the employee to a deduction in respect of house rent paid by him for his own residence. Such deduction is permissible subject to the following conditions:-

(a) The employee has not been in receipt of any House Rent Allowance

specifically granted to him which qualifies for exemption under section 10(13A) of the Act;

(b) The employee files the declaration in Form No.10BA. (Annexure X)

(c) The employee does not own:

(i) any residential accommodation himself or by his spouse or minor child or where such employee is a member of a Hindu Undivided Family, by such family, at the place where he ordinarily resides or performs duties of his office or carries on his business or profession; or

(ii) at any other place, any residential accommodation which is in the occupation of the employee, the value of which is to be determined under section 23(2)(a) or section 23(4)(a), as the case may be.

(d) He will be entitled to a deduction in respect of house rent paid by him in excess of 10% of his total income. The deduction shall be equal to 25% of total income or Rs. 5,000/- per month, whichever is less. The total income for working out these percentages will be computed before making any deduction under section 80GG.

The Drawing and Disbursing Authorities should satisfy themselves that all the conditions mentioned above are satisfied before such deduction is allowed by them to the employee. They should also satisfy themselves in this regard by insisting on production of evidence of actual payment of rent.

On May 01, 2017 by www.taxexcel.net

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Salaried employees are well aware of HRA and its benefit while filing IT returns. The section 80GG of the income tax offers a tax benefit for individuals and employees who do not receive rent allowance or those self-employed, they can get the exemption from the House Rent U/s 80GG Max Rs. 5000/-P.M. or Rs. 60,000/- P.A. from the financial year 2016-17

The Section 80GG of the Income Tax is only applicable for individuals who do not avail HRA. It also holds true for people who do not claim a deduction for their rent in any other sections of the Income Tax.

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3) Individual Salary Structure have in this utility for both of Govt & Non-Govt employees.

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5) Automatic Prepare Income Tax Form 16 Part A&B and Part B

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7) Automatic Convert the Amount into the In-Words.

However, to be eligible under the Section 80GG of the Income Tax, you required to meet the following conditions:

1.             The Section 80GG is valid for individuals and HUF.

2.             The person or the recipient should be a salaried or self-employed. However, the taxpayer should not receive any amount under HRA.

3.             The taxpayer himself or spouse/minor child/HUF of which he/she is a member should not possess any property or accommodation at the location where they are working or carrying business activities.

4.             If the individual or the taxpayer holds the possession of accommodation or property in another place than stated above, the tax deduction seeking concession is not valid [Under Section 23 (2) or 23 (4)(a)].1

5.             It is important to submit Form No.10BA, stating details of the expenditure incurred by him/her towards house rent.

Individuals or employees who do not receive HRA as part of their salary have to seek exemption under Section 80GG. The deduction for the claim is possible by filing appropriate details during the Income Tax Return filing.

However, even at the sake of repeating,  the following conditions must be met:

1.                                     Exemption for HRA is available only to individuals or HUF

2.                                     The assessee is self-employed or salaried and does not receive any benefit under Section 10(13A) for House Rent Allowance

3.                                     The assessee or the spouse or the HUF should not possess any accommodation at the location of the work or carried his/her profession or business

4.                                     If the assessee owns a property at any other place, he/she shall not claim benefit from it as self-occupied property

If you, as a taxpayer, are claiming deduction under Section 80GG of the Income Tax Act, you require furnishing declaration in Form 10BA that satisfies all the conditions mentioned above.

Limitations of Section 80 GG

The deduction allowed under Section 80GG for expenditure towards the rent paid is the least of the following:

1.             INR 5,000 per month

2.             Rent paid minus 10% of the total income

3.             25% of the total income earned by the taxpayer

The income of the taxpayer is the amount of total revenue received for a period.

Additionally, rent paid towards finished or semi-finished accommodation is also eligible for the claim under Section 80GG of the Income Tax.

On December 26, 2016 by www.taxexcel.net

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Calculation and Taxability of House Rent Allowance (HRA). Today  we are Providing a Premium guide on Calculation and Taxability of House Rent Allowance (HRA). Now you can Find  Best Notes For Calculation of House Rent Allowance. House Rent Allowance [Section 10(13A) & Rule 2A] Calculation and Tax Liability. How To Compute House Rent Allowance. We are Providing Full Computation for Calculation of House Rent Allowance for 2014-15. Now You can Scroll Down Below And See Full guide on Calculation and Taxability of House Rent Allowance (HRA), House Rent Allowance ( HRA) Calculate in India, New House Rent allowance Exemption Rule, How Much House Rent Allowance is Exempt, House Rent Allowance Exemption Calculator, House Rent Allowance ( HRA) Rules and Tax Exemption, House Rent Allowance Act, House Rent Allowance Meaning, House Rent Allowance for central Government Employees. Now you can scroll down below and check complete details regarding “Calculation and Taxability of House Rent Allowance (HRA)”

Download the Automatic House Rent Exemption Calculator in Excel U/s 10(13A)

House Rent Allowances is given by the employer to the employee to meet the expenses in connection with Rent of the accommodation which the employee might have to take. House Rent Allowance is taxable under the head salary to the extent it is not exempt under section 10(13A) of the Act.

Exemption of H.R.A.

House rent allowance is exempt under section 10(13A) read with rule 2A, to the extent of the minimum of The following three amounts:

(a) Actual HRA received by the employee in respect of the “Relevant Period”

(b) Excess of rent paid for the accommodation occupied by him over 10% of the salary for the “Relevant Period” (Rent Paid -10% Salary)

(c) 50% of salary where the accommodation is situated at Mumbai, Calcutta, Delhi or Chennai and 40% Of salary where the house is situated at any other place for the “Relevant Period”

The minimum of the above three amounts shall be exempt from tax and the balance shall be taxable and thus included in the gross salary of the employee.

Important Note

Condition: Under Sec 10(13A) an employee who is in receipt of House Rent Allowance can claim exemption, if he does not live in his own house, and pays rent in excess of 10% of his salary for his residential accommodation.

No entitlement of exemption: In the following cases, exemption of HRA is not available to employee:-

(a) When an employee stays in his own house.

(b) When an employee does not pay any rent or incur any expenditure towards rent.

(c) When the rent paid is less than 10% of salary.

Relevant Period: Relevant period means the period during which the said accommodation was occupied by the Employee during the previous year.

Meaning of Salary: Total

1.                              Basic Salary

2.                              Dearness Allowance (if forming part of retirement benefits)

3.                              % based commission on turnover.

Factors affecting exemption: Exemption of HRA depends on  the following factors:

(a) Salary of the employee 

(b) HRA Received (c) Rent Paid (d) Place of Residence

Where these four factors continue to be same throughout the year, the exemption u/s 10(13A) should be calculated

On “Annual basis”. However, if there is any change in respect of any of the above factors then calculation should be done in “Monthly basis”

Example of H.R.A. Calculation :-

If any allowance is given for House rent than it is called H.R.A.

Exemption of H.R.A. Under Section 10(13A) & Rule 2A:- If Employee receive H.R.A. than it will be taxable under section 10(13A) & Rule 2A as under-

A	Actual H.R.A. received	******
B	Rent Paid – 10% of Salary	******
C	40% and 50% of Salary	******
	Which ever is less	******

Note-1  40% and 50% depends on Rental place not on place of service

Note-2  50% of salary where the accommodation is situated at Mumbai, Calcutta, Delhi or  Chennai and 40% Of salary where the house is situated at any other place.

On August 14, 2016 by www.taxexcel.net

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All salaries are very much familiar with HRA and how to get the benefit of the rent they pay. However, what about those who not get HRA in their salary or for self-employed? Will they still get rent benefit? The answer to both the questions is Section 80GG of Income Tax.

As per the Finance Budget 2016 enhance the maximum limit of U/s 80GG to Rs. 60,000/- from the F.Y.2016-17 and A.Y.2017-18

This section only applies to those who have not availed HRA in their salary or not claiming the deduction on their rent in any of the other sections of income tax.  Below are a few conditions to avail the deduction under this section.

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1. This section is only applicable to Individual or HUF.
2. Tax Payer may be either salaried or a self-employed. However, must not be getting HRA.
3. Tax Payer himself or spouse/Minor Child/HUF of which he is a member should not own any accommodation at a place where he is doing a job or business.
4. If Tax Payer owns a house at a place other than the place noted above, then the concession in respect of self-occupied property is not claimed by him [Under Section 23 (2) (a) or 23 (4) (a)].
5. Tax Payer has to file a declaration in Form No.10BA regarding the expenditure incurred by him towards the payment of rent.

How much amount of deduction one can avail under Sec. 80GG?

If the above five conditions are satisfied, the amount deductible under Section 80GG is LEAST OF THE FOLLOWING.

• Rs.5, 000 per month;
• 25% of total income of taxpayer for the year; or
• Rent Paid less 10% of total income (Rent Paid-10% of Total Income).

On August 04, 2016 by www.taxexcel.net

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Salaried individuals can avail of house rent allowance (HRA) exemption under Section 10(13A). Self-employed professionals cannot be considered for HRA exemption, but they can claim home rent expenses under Section 80GG Max. Rs. 60,000/- P.A. ]

Effective the current financial year, those claiming HRA need to submit landlord’s PAN details if the rent is above Rs15,000 per month or above 1 Lakh P.A..

The actual HRA for tax exemption is lower of the following three numbers:

a) The actual HRA your employer provides you in the salary;

b) 50% of the basic salary when you reside in a metro or 40% for non-metro location; and

c) actual rent you pay minus 10% of basic salary.

For example, assume your basic salary is Rs46,000 per month and the actual HRA offered by the company is Rs26,000.

You rent an apartment in Mumbai for Rs25,000 per month.

Residence in Mumbai will make you eligible for a 50% of the basic pay for HRA exemption. These values are considered to find out HRA tax exemption:

 a) Actual HRA received, i.e., Rs26,000;

b) 50% of the basic salary, i.e., Rs23,000; and

c) excess of rent paid over 10% of basic salary, i.e., Rs25,000 – Rs4,600 = Rs20,400. Your HRA exemption is lower of the three (Rs20,400).

The taxable HRA amount is Rs26,000 minus Rs20,400 = Rs5,600.

Tax exemption on home rent for self-employed under Section 80GG is limited Max Rs.60,000/- as per Budget 2016. It is lower of three values:

a) Actual rent minus 10% of gross professional fees;

b) Rs 60,000 per annum; and

c) 25% of gross professional fees. If the self-employed is paying office rent, that can be shown as expense. If not, home office may be shown if a specific home area is used exclusively for office purposes.

Download Automated House Rent Exemption Calculator U/s 10(13A) with brief how to calculate the H.R.A. Exemption.

On March 30, 2016 by www.taxexcel.net

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