Section 80GG - Tax Claim Deduction for Rent Paid - CGEmployee

Sec. 80GG - Tax Claim Deduction for Rent Paid - CGEmployee

You can get the tax benefit under section 80GG of Income Tax Act, 1961 if you are paying rent for your accommodation, but do not get House Rent Allowance (HRA) as a component of your salary. Income Tax Section 80GG – Deduction for Rent Paid Under Section 80GG

 

What is 80GG Deduction?

If you do not receive HRA from your employer and make payments towards rent for any furnished or unfurnished accommodation occupied by you for your own residence, you can claim deduction Income Tax under section 80GG towards rent that you pay.

How to claim deduction under Section 80GG?

For filing a valid claim under section 80GG you are required to submit Form 10BA online. Along with that you need to claim it in the income tax return filed.

Eligibility : Conditions to fulfill for claiming deduction under section 80GG

1. You have paid rent for your own residence
2. You have not received any HRA from your employer during the year
3. You, your spouse, minor child or the HUF (if any) of which you are a member – do not own residence at the place where you currently reside or perform office duties or conduct your business or profession.
4. If you own any residence at any other place (other than place of residence noted above), you do not claim tax benefit for this property as a self-occupied property.

Maximum Limit for deduction under section 80GG

• Limit 1: Rs. 60,000 per year (i.e. Rs. 5,000 per month)
• Limit 2: Total rent paid minus 10% of the adjusted total income
• Limit 3: 25% of adjusted total income of employee

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