Section 10(13a and 80gg)

Section 80GG and Section ( 13A ) tax benefit on rent. In this video I am going to explain you the actual meaning of both the sections i. We pay rent for our residence but we do. Self employed individuals are not allowed to take any deduction under this section. HRA received is taxable.

GG has not kept pace with the limits under Sec. A ) obviously because the limit under Sec. A ) could be subject matter of revision by notification, while the limit under Sec.

GG is stipulated in the statute itself so that an amendment to law would be required for enhancing the limit. Deductions in respect of rents paid. In computing the total income of an assessee, not being an assessee having any income falling within clause ( 13A ) of section , there shall be deducted any expenditure incurred by him in excess of ten per cent of his total income towards payment of rent (by whatever name called) in respect of any.

In that case, you are to submit the rent receipts to your employer and they will be included in your Form 1 under section ( 13A ) of the Act. You have filed Form No. BA, declaring that you are not claiming benefit for a self-occupied property in the city of work. PM without any bifurcation hence eligible for 80GG Can i claim both the deductions for eespective period.

Actual rent paid minus of basic salary. Insertion of new section 80GG. In this section , the expressions ten per cent of his total income and twenty-five per cent of. DETERMINATION OF INCOME. The employee as per the eligibility under section ( 13A ) can claim exemption from House Rent Allowance (HRA) received every month.

A self-employed person did not get a salary from the employer. Rs 60per year (Rs 0per month). It can be partially or fully claimed based on your actual expense on rent which is claimed by submitting rent receipts. It has been introduced to provide relief to those individuals who do not receive any house rent allowance but are paying rent for the stay.

An individual, to claim deduction under this section , should be self-employed or a salaried one. GG allows the individuals to claim a deduction in respect of house rent paid. That is why they are unable to get deserving tax rebate under section 80GG. Knowledge Series 14views. Calculation Example 2. B stays in a rental accomodation at Mumbai for his job.

Like in case of metro cities, you are eligible for a higher tax exemption in comparison of non-metro cities. But, tax deduction under section 80GG is not based on the city of living. The deduction is applicable for those individuals who do not receive HRA.

According to point the amount would be – 10– 70( of income) – Rs. As per point the amount would be Rs. Act, here the maximum amount allowed is only Rs 0per month (Rs 2annually) and is also subject to certain conditions.

This benefit is available only to certain individuals who are salaried and stayed in a rented accommodation. Please note that section ( 13A ) and section 80GG are two completely different provisions under the IT Act and in your case only section ( 13A ) is applicable. This deduction is prescribed under the section 80GG which is applicable to individuals and HUFs.

Also, if any salaried individual or HUFs claim this deduction then they must not claim any benefit under Section ( 13A ). Conclusion-Limit under Sec. Computation of Salary for HRA. This reform will benefit the individual taxpayers to claim the deduction for the rent paid by them upto Rs.