Claim Tax Benefit U/s 80GG Who are not get House Rent With Automated Income Tax Form 16 Part B for F.Y. 2018-19

Section 80GG is one of the lesser-known sections which can be used by taxpayers to lessen their tax burden by claiming tax exemption for rent paid (in case HRA is not part of salary). This section can be used to be either a salaried/pensioner or self-employed taxpayers.

Conditions for Claiming Tax benefit u/s 80GG for Rent Paid

You can guarantee charge conclusion on lease paid u/s 80GG at the season of recording government form just if the following conditions are fulfilled:

         The finding is accessible just for people and HUFs

         For a salaried individual to be qualified for tax break u/s 80GG, he ought not to get HRA from his boss.

         Pensioners or Self utilized don't have any HRA thus they can exploit 80GG

         No one in the family including companion, minor kids, self or HUF he is individual from should possess a house in the city you are utilized or conveying your business.

         If you claim a house in the various city, you can't indicate it as self-involved. You need to consider it as regarded to let out – for example – you need to indicate rental pay whether it's really put on the lease.

Moreover, you have to fill structure no 10BA to guarantee tax cut u/s 80GG. This structure isn't to be submitted anyplace yet kept with you for records to show to I-T office if there should be an occurrence of examination.

Download Automated One by One Prepare Income Tax Form 16 Part B for the F.Y. 2018-19

Finding permitted u/s 80GG:

The House Rent finding is least of the underneath 3 numbers:

1.         Rs. 5,000 every month [increased from Rs 2,000 to Rs 5,000 in Budget 2016]

2.         25% of yearly pay

3.         (Rent Paid – 10% of Annual Income)

Expect that Amit has a yearly salary of Rs 5 Lakhs and he pays the lease of Rs 10,000 every month. Here is his tax cut for lease paid.

1.         Rs. 5,000 every month – Rs 60,000

2.         25% of yearly pay – Rs 1,25,000

3.         (Rent Paid – 10% of Annual Income) – Rs 70,000 (1,20,000 – 50,000)

The expense derivation would be least of over 3 numbers = Rs 60,000

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Who are not get HRA Allowances they can get House Rent Exemption U/s 80GG,with Automatic HRA Exemption Calculator

 Download Automatic House Rent Exemption Calculator

Under Section 80GG, an Individual can claim the deduction for the rent paid even if he does not get House Rent Allowances. Not many people are aware of this deduction.

Section 80GG allows the Individuals to a deduction in respect of house rent paid by him for his own residence.
Such deduction is permissible subject to the following conditions:-

• The Individual has not been in receipt of any House Rent Allowance from his employer specifically granted to him which qualifies for exemption under section 10(13A) of the Act;
• The Individual files the declaration in Form No. 10BA. Download Excel Based Form 10 BA
• The employee does not own:

1.  A)  any residential accommodation himself or by his spouse or minor child or where such Individual is a member of a Hindu Undivided Family, by such family, at the place where he ordinarily resides or performs duties of his office or carries on his business or profession; or

B ) at any other place, any residential accommodation being accommodation in the occupation of the Individual, the value of which is to be determined under Section 23(2)(a) or Section 23(4)(a) as the case may be.

• He will be entitled to a deduction in respect of house rent paid by him in excess of 10% of his total income, subject to a ceiling of 25% thereof or Rs. 2,000/- per month, whichever is less. The total income for working out these percentages will be computed before making any deduction under section 80GG. In other words, eligibility will be the least amount of the following:-

2)

1. Rent paid minus 10 percent the adjusted total income.
2. Rs 2,000 per month.
3. 25 percent of the adjusted total income.

• The deduction will also not be available to an assessee if any residential accommodation is owned by the assessee at any other place, which he is occupying, and the concessions in respect of self-occupied house are claimed by him for that property. In such a case, no deduction will be allowed in respect of the rent paid, even if the person does not own any residential accommodation at the place where he ordinarily resides.

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Claim Tax Benefit for Rent Paid U/s 80GG,With Automated All in One TDS on Salary for Non-Govt employees for F.Y.2017-18

Section 80GG is one of lesser known sections which can be used by taxpayers to lessen their tax burden by claiming tax exemption for rent paid (in case HRA is not part of salary). This section can be used by being either salaried/pensioner or self-employed tax payers.

Conditions for Claiming Tax benefit u/s 80GG for Rent Paid.

You can claim the tax deduction on rent paid u/s 80GG at the time of filing the tax return only if following conditions are satisfied:

1.                  The deduction is available only for individuals & HUFs

2.           For a salaried person to be eligible for tax benefit u/s 80GG, he should not receive HRA from his employer.

3.                  Pensioners or Self-employed do not have any HRA and so they can take advantage of 80GG

4.                  No one in the family including spouse, minor children, self or HUF he is the member of should own a house in the city you are employed or carrying your business.

5.                  If you own a house in a different city, you cannot show it as self-occupied. You have to consider it as deemed to let out – i.e. – you have to show rental income whether or not it’s actually put on rent.

Additionally, you need to fill form no 10BA to claim tax benefit u/s 80GG. This form is NOT to be submitted anywhere but kept with you for records to show to I-T department in case of scrutiny.

Download: Automated All in One TDS on Salary for Non-Govt employees for F.Y.2017-18

The deduction allowed u/s 80GG:

The House Rent deduction is a minimum of the below 3 numbers:

1.                  Rs. 5,000 per month [increased from Rs 2,000 to Rs 5,000 in Budget 2016]

2.                  25% of annual income

3.                  (Rent Paid – 10% of Annual Income)

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Under Section 80GG, an Individual can claim deduction for the rent paid even if he does not get House Rent Allowances. Not many people are aware of this deduction.

Section 80GG allows the Individuals to a deduction in respect of house rent paid by him for his own residence.

Such deduction is permissible subject to the following conditions:-

• The Individual has not been in receipt of any House Rent Allowance from his employer specifically granted to him which qualifies for exemption under section 10(13A) of the Act;
• The Individual files the declaration in Form No. 10BA. Download Excel Based Form 10 BA
• The employee does not own:

1.      A)  any residential accommodation himself or by his spouse or minor child or where such Individual is a member of a Hindu Undivided Family, by such family, at the place where he ordinarily resides or performs duties of his office or carries on his business or profession; or

       B ) at any other place, any residential accommodation being accommodation in the occupation of the Individual, the value of which is to be determined under Section 23(2)(a) or Section 23(4)(a) as the case may be.

• He will be entitled to a deduction in respect of house rent paid by him in excess of 10% of his total income, subject to a ceiling of 25% thereof or Rs. 5,000/- per month, whichever is less. The total income for working out these percentages will be computed before making any deduction under section 80GG. In other words, eligibility will be the least amount of the following:-

2)

1.     Rent paid minus 10 percent the adjusted total income.

2.     Rs 2,000 per month.

3.     25 percent of the adjusted total income.

• The deduction will also not be available to an assessee if any residential accommodation is owned by the assessee at any other place, which he is occupying, and the concessions in respect of self-occupied house are claimed by him for that property. In such a case, no deduction will be allowed in respect of the rent paid, even if the person does not own any residential accommodation at the place where he ordinarily resides.

Download Automatic House Rent Exemption Calculator

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