Taxexcel: Income Tax section 80GG has increased up to Rs. 5000 P.M.

Monday 2 January 2017

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 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]

Deductor's the main sheet

Employees Salary Structure with Section wise deduction sheet

Form 16 Part B

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Sunday 21 August 2016

Under Section 80GG :- The Finance Budget 2016 has increased the limit of deduction u/s 80GG up to Rs. 5000/- P.M. or 60,000/- P.A.

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 All in One TDS on Salary with Section 80GG for Non-Govt Employees Income Tax preparation Excel Based Software for Financial Year 2016-17 & A.Y. 2017-18 [ This Excel Utility can prepare at a time Tax Compute Sheet + Individual Salary Structure + Automated Form 12 BA + Automatic H.R.A. Calculation + Automated Form 16 Part A&B and Form 16 Part B for F.Y.2016-17]

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 is Rs.60 thousand P.A.

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. 5,000 per month

3.25% of your total income

For Claim this Tax Exemption you must fill the Form No 10BA

( Download 10BA)