- Type of Assessee: Individuals
- Purpose of Tenancy: It should be for his own residence
- No HRA: In case of salaried employees who are receiving salary and allowances, he should not be in receipt of House Rent Allowance from his employer
- Owning of Housing Property: Assessee himself, his spouse, minor child or HUF of which assessee is a member:
A. Should not own any residential accommodation:
a. At the place where he resides or
b. at his place of business/employment.
Explanation: The section doesn’t explain what constitutes “at the place” i.e., whether the assessee who is claiming deduction shouldn’t own any residential property in the same locality or city or district or the state. So that leaves us with an option to deduce the intention behind the actual deduction.
In case the assessee owns a residential accommodation and if he can prove that it is not practicable to travel daily to the place of work from such own residential accommodation, then he can claim deduction (provided he satisfies the remaining conditions) under this section.
B. If he owns any house property at any other place, he should not claim benefit of Self-Occupany with respect to such house property owned.
Amount allowed as Deduction u/s 80GG:
|Least of the following|
|a.||Rent Paid Less 10% of Adjusted Total Income (calculated as given below)|
|b.||Rs. 2,000 per month|
|c.||25% of Adjusted Total Income (calculated as given below)|
|Adjusted Total Income|
|a.||Gross Total Income||xxxxxxx|
|a.||Short Term Capital Gains||(xxxx)|
|b||Long Term Capital Gains||(xxxx)|
|c.||Any Income reffered u/s 115A to 115D||(xxxx)|
|d.||All Deductions under Chapter VIA except deduction u/s 80GG||(xxxx)|
|Adjusted Total Income||XXXXXX|
In case you are looking for automatic 80GG deduction calculator, you can use the below one:
Rent Paid For The Year
Gross Total Income
|All other Deductions under Chapter VI-A except 80GG|
|Short Term Capital Gains u/s 111A (if any)
|Long Term Capital Gains u/s 112(2) (if any)
|Income as referred u/s 115A to 115D (if any)