Who are not get HRA Allowances they can get House Rent Exemption U/s 80GG,with Master of Form 16 Part B with Form 12 BA

Download Master of Form 16 with Form 12 BA for FY 2014-15 [ This Excel Utility can prepare at a time 50 employees Form 16 Part B with Form 12 BA ]

    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 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
) 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
  • 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 least
    amount of the following :-
  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.

Leave a Reply

Your email address will not be published. Required fields are marked *