Deduction in respect of rent paid

This query is : Resolved

Ravindra Nath Vatsa (Querist)
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02 February 2011 I would like to know how much deduction is allowed under the IT Act in respect of a person staying in a rented accommodation. Pl reply and also quote the section under which allowed.

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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02 February 2011 An assessee is entitled to a deduction in respect of house rent paid by him in excess of 10 percent of his total income, subject to a ceiling of 25 percent 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 U/S 8OGG;

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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02 February 2011 Conditions for the above :

the assessee has not been in receipt of any house rent allowance specifically granted to him which qualifies for exemption under section 10(13A) of the Act;

the assessee does not own

i) any residential accommodation himself or by his spouse or minor child or where such assessee 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

ii) at any other place, any residential accommodation being accommodation in the occupation of the assessee.

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Guest

Guest (Expert)

02 February 2011 Agree with Mr. Jha