Section 80gg of income tax act

Some of these entail being an individual or a Hindu Undivided Family (HUF), being self-employed or salarie etc. Rs 60per year (Rs 0per month ). 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 under section 80GG towards rent that you pay. 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. A person eligible for claiming deduction under section 80GG.

An employee or self -employed person who is not getting House rent allowance and has not received HRA at any time during the financial year.

In computing the total income of an assessee, not being an assessee having any income falling within clause (13A) of section 1 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. Deductions in respect of rents paid. This benefit is available to both salaried and self employed people. Pensioners who don’t receive HRA often take the benefit of 80GG.

As per section 80GG of the Income tax act non- salaried person as well as salaried persons not getting house rent allowance may claim deduction of house rent paid for furnished or unfurnished house for self-occupation. Least of the following is eligible for deduction. Generally, house rent allowance (HRA) is part of your salary CTC.

What if you don’t receive the HRA as a component of your CTC?

The house must be in use for their residential accommodation. The provisions of the said deduction are taken up and explained in the existing article. This section provides deductions to those individuals who don’t get any benefit of the amount paid towards rented accommodation by any other means of provisions of this Act.

If the assessee is residing in a rented accommodation he can, subject to fulfillment of certain criteria, get deduction under this Section. If an individual does not get HRA from the employer and the individual has borne the rental. Such deduction is permissible. WHAT IS SECTION 80GG ? Getting tax exemption. How is the HRA exemption calculated?

The deduction is allowed to taxpayers who do not receive any HRA from their employer. Total Income = Gross total income minus long term capital gains, short-term capital gains under section 111A, deductions under sections 80C to 80U (other than 80GG ) and income under section 115A. Not every employer offers HRA (House Rent Allowance). The lower of the two can be claimed as a deduction. Currently, since the Income Tax return is filed online and the Income Tax Department has not yet made any provision for e-filing the Form No.

That is why they are unable to get deserving tax rebate under section 80GG. To encourage the concept of donations or charity towards the needy and the poor section of the society, the government of India has been regularly promoting people for charity and to donate some of their income and this donation also can be claimed as a deductions under section 80G of the Income Tax Act. Sir, if you are not receiving the HRA like other pensioner then you can claim deduction under section 80GG details as given above.

Section 80GG deduction is mostly not known to many tax payers. Salaried employees are well aware of HRA and its benefit while filing IT returns. GG is a segment in the Income Tax Act of India, under which an individual, either individual or HUF can guarantee a derivation on the lease that is paid towards an outfitted or empty house.

Under section 80GG , you can claim benefits under Rent paid by employees not having HRA. He has paid house rent for his own residence. It should be noted that there is no upper limit specified under section 80GGC, which means any amount contributed to a political party can be claimed as a tax deduction.

Can an individual, who doesn’t receive HRA, claim tax deduction on rent paid? Most salaried individuals, who stay in rented accommodations, are eligible to claim tax deduction on rent paid out of the House Rent Allowance (HRA) they get. The taxpayer is eligible is to take benefit under section 80d deduction of the income tax act.