Section 80GG - Avail Tax Benefit on Rent Paid
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 be either salaried/pensioner or self-employed tax payers.
You can claim tax deduction on rent paid u/s 80GG at the time of filing tax return only if following conditions are satisfied:
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.
The House Rent deduction is minimum of the below 3 numbers:
Here Annual income refers to
Minus
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Assume that Amit has annual income of Rs 5 Lakhs and he pays rent of Rs 10,000 per month. Here is his tax benefit for rent paid.
The tax deduction would be minimum of above 3 numbers = Rs 60,000
Tax exemption under section 80GG is part of Chapter VI A and has to be filled as you do for Section 80C in the ITR Forms.
In case you were salaried receiving HRA for some part of the financial year but paid rent for the entire year, you can claim benefit under both HRA & Section 80GG. For the period you received HRA, you should claim tax benefit on that through your employer. For rest of months you would get tax benefit u/s 80GG.
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Hi... I am bank employee and paid rs. 7000 per month over the rent provided by my bank for 9 months. Can i claim in 80 gg for excess rent i paid for 9 months. If yes, in Rent paid - 10 percent total income, formula whether I have to take 9 month income or full year income??
no you cannot
Hi Amit
My work location is Ahmedabad and lives in rented house. I have purchased a flat in Baroda (another city) which is yet not delivered but I am paying Loan interest. My salary has HRA component too. Please let me know whether I can avail 80GG and Interst payable on Borrowed capital under B2- Type of house property?
If you have HRA component then you cannot take benefit of 80GG.
You need not select anything in house property as its not yet ready to move.
My father's salary is 800000 and after deductions it will be around 645000.Now monthly we are paying rent of ₹5200.
So after calculating rent paid less 10% of salary it will be showing negative figure.
So which is to be considered?
If this is the case then he wont get exemption u/s 80gg?
thats right he won't get exemption as this provision is for low income.
Good day amit
NO HRA Component.
My salary after 80 c ded is 574871/-
Rent paid 72000/- pa
As per above mentionedcondition of sr no 3- rent paid-10% of ann income - 72000-57487 = 14513/-
Kindly advide how much rebate will applicable for me
thanks
Dear Amit
My gross income for FY 2017-18 is 600871/-. After deducting savings (80C) 26000/- it is 574871/-
I am paying rent Rs 72000/- P/A .
As per Sr no 3 condition minimum ded 72000-57487 =14513/-
Kindly advise how much rebate will applicable for me.
Thanks
Your Annual income = Rs 6,00,871 - 25% of this = Rs 150,217
Rent paid - 10% of annual income = Rs 6,00,871 - 72,000 = Rs 11,913
So tax exemption for 80GG = Min (150,217 or 11,913 or 60,000) = 11,913
my bldg. gone under redevelopment and I am getting rent from builder and i am paying more rent to the owner where presently i ma staying. am i able to get any benefits in HRA
You get HRA only if both the conditions are satisfied:
1. If you stay on rent and
2. If your salary has HRA component in it.
In case either one condition is no satisfied you would not get HRA tax benefit. However you can also get some tax benefit u/s 80GG for rent paid.
Hi Amit
Can the rent paid for a foreign house claimed under 80GG. I was not receiving HRA during that period total 5 months.
No it should be in India
Can you refer to the relevant section in IT rules which says it has to be exclusively in india. I see that it does not mention location for 80GG
I do not have specific reference for the same.
Can house rent divide between father and son for same house
Yes only if both are joint owners!
hello mr. amit
once i put 5000 PM rent but he show only 2000 PM exemption please healp me
Where are you facing this issue? in ITR?
actual how much amount will be tax benifit on section 80gg
Max Rs 5K per month