FAQ’s on Deduction under section 80GG of Income Tax Act, 1961
Q.1 Persons eligible for claiming deduction?
- Only individuals can claim this deduction.
- That individual can be a self employed person or an employee who do not receive the house rent allowance.
Q.2 Conditions to claim deduction under this section?
- An individual who pays rent for his residential accommodation can claim this deduction. (Thus he should be having some proof of actual payment of rent to any other person)
- He should submit a declaration in Form 12BA to the assessing officer.
Q.3 Can person claiming deduction own any house?
- The following persons should not own any residential house at the place where he performs his duties under employment or business or profession.
- He Himself
- His Spouse
- His Minor Child
- HUF in which he is a member
- If the taxpayer owns house at any other place, then he should not claim that property as self occupied property.
Q.4 Manner of Calculation of deduction u/s 80GG?
Deduction u/s 80GG will be lower of the following.
- 2000/- per month [Upto FY 2015-16] ;
Rs. 5000/- per month [FY 2016-2017 onwards]
- 25% of Gross Total Income
- Rent Paid – 10% of Gross total Income
Amit Mundhra FCA