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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I am a pensioner. Own a house and it is rented. I am showing rent as income. Also paying house rent as staying in a rented house. Rent paid 1.80 lac. Annual income from all sources 9.00 lac. What amount allowed under section 80GG.
Hi sir
My mother in law is pensioner and also getting family pension and also she is residing with us. Is she can claim benefits of 80GG for FY 2019-20
No, She can't claim deduction U/S-80GG.
(Section applies where you are a tenant and paying Rent)
Hi Amit,
My mother is pensioner and having income from pension 500000 Per anuum. This income is from bank interest received on FDs. Can you confirm can she claim HRA ?
my pension is 480000 and interest from saving225000 and 20000 other income my gross income is 725000 my saving is 109000 asppf can i claim hra under sectiò80gg
Hi Amit
I am pensioner but idonot have any house in my name.My wife is homemaker.House is in her name. Am I eligible to claim under80gg house rent ?.pl comment.
hello amit i am pensioner my gross income from pension and interest and other income is rs 726000/_ and my saving is 109000 as ppf can i claim benfits of 80gg as house rent
Hi Amit,
My mother is pensioner and having income from pension 500000 Per anuum. Income from FDs is 320000 PA. Can you confirm can she claim HRA ?
hallo Amit,
I am prakash. I own a house in my single name in a non-metro. I have a home loan for the same and the same is given for rentals also. Iam staying in a separate rental house for the convenience of my old mother's treatment, children education etc. Iam showing the rentals as well as claim deductions for interest for home loan for tax purpose. Am i eligible for exemption of Rs 5000/- per month(lowest eligible) under Sec80GG also as rent paid in the tax. Iam a pensioner of age 60 years.
tks and regards
If you own a house you cannot claim 80GG deduction
Sir, l am not drawing hra but paying house rent for my family staying in a rented house for children education.
Please intimate whether l am eligible for exemption under 80gg and is it out of ₹150000/-
Yes you can get tax benefit u/s 80GG and its not related to 1.5 lakhs benefit u/s 80C
hello sir, i have booked a flat in my city with taken a bank loan on january'18. but till date promoter is not in condition to handover the flat. as well as i already stay a rented house and paid in cash @ Rs. 9000.oo per month and also paid bank loan as time to time (Monthly basis). at this situation can i availed HRA Exempted as per IT Rule and deduction of loan interest paid to bank during this financial year. please specify.
thanking you
Iam a salaried person i don't get HRA although my company has reimbursed 15000 per month for the rent, can i claim under this section.
Sir,
My daughter is a teacher.She was not getting HRA till 23-9-2018.On change of job, she started drawing HRA from 24-9-18 She satisfied all the eligibility conditions under section 80GG but upto 23-9-18 only..Kindly guide how should she work out deduction under section 80GG for the period 1-4-18 to 23-9-18..Figures for entire FY 18-19 are detailed below:-
Rent paid: Rs.156000 @Rs.13000 per month,Income from other sources:Rs.1300000,income from salary:388214,HRA for the period 24-9-18 to 31-3-19 :Rs21979 ,,PPF: Rs150000,Mediclaim insurance premium:Rs.17000.
Salary for the period 1-4-18 to 23-9-18:Rs.145098