Deduction for Rent Paid Under Section 80GG – All you need to know

Deduction for Rent Paid Under Section 80 GG, Reduction for lease paid u/s 80 GG, Area 80 GG Reduction for Rent Paid, Deduction under section 80 GG in regard of lease spent for accommodation, There are some sections in the income tax act at which most people don’t pay much attention due to the fact that they happen to be beneficial in extremely few cases. Area 80 GG of the earnings tax act can be stated as one of such sections.

Reduction for Rent Paid Under Section 80 GG

As per earnings tax act 1961 if an individual has not declared any reduction towards the rent spent for his accommodation under any other section then he can declare the same utilizing 80 GG. For this some more conditions need to be satisfied as:

( 1) The individual is not getting house lease allowance from his employer or his wage does not include home lease allowance which receives exemption under area 10 (13 A) of the Act then he is qualified to declare tax deduction for your house lease expense that were incurred for his living throughout the previous year.

Should Check Out– Reduction for School Costs Paid u/s 80 c

( 2) Individual files a declaration in Type No. 10 Bachelor’s Degree.

( 3) At the location where he normally lives or performs duties of his office or continues his business or profession he does not have ownership of

any residential lodging himself or by his spouse or minor kid or the HUF which he is a part does not owned any residential accommodation.

( 4) At any other location
any residential lodging being lodging in the profession of the Person, the value of which is to be figured out under Area 23( 2 )( a) or Section 23( 4 )( a) as the case might be.

Should Check Out– Deduction For Contribution Under Section 80 G

Reduction Under section 80 GG:

reduction under area 80 GG of income tax act, 1961 is enabled to the level of the least of following:

( 1) Rent paid in excess of 10% of total earnings *

( 2) 25% of overall earnings *

( 3 ). Rs 2000 monthly.

If the assessee owns a home in some other city and use that house for his own accommodation and has not provided it for rent then he can not claim deduction under area 80 GG although he stays in a rented home and pay lease at the area where he performs his workplace responsibilities.

Need To Check Out– Section 43 B Deductions Based Actual Payments

Overall income:

( A) Gross Total income: XXXX

Less:

( B) All Long term capital gains. XXXX

( C) Brief capital gains which attract tax at 10%. XXXX

( D) Deductions under sections 80 c to 80 u omitting 80 GG. XXXX.

Overall earnings. XXXXX

Should Read– Interest on non Payment/Deduction of TDS

Example:

For instance Mr Pramod earns an amount of 10 lakhs per annum by way of his employment where he doesn’t get any HRA as a part of his income and pleased all the conditions as mentioned above, having a long Term capital gain 50,000 emerging on sale of a possession and invested 100000 under Sukanya samridhi yojana and he pays a month-to-month rent of 10000 for his accommodation.

Gross total income. = 10,00,000

(-) Long term cap gain = 50,000

(-) Deduction for Sukanya samridhi yojana financial investment = 100000

Overall income for the purpose of 80 GG = 8,50,000 0.