House on Leave & Licence, Rent Paid for it Eligible for Deduciton U/s. 80GG

This query is : Resolved

Report Abuse Follow Query Ask a Query

Vipul Gada

Vipul Gada (Querist)
Follow

09 October 2007 Can assessee claim decution u/s.80GG for Rent paid for House taken on "Leave & Licence".

CMA Gul S

CMA Gul S (Expert)
Follow

10 October 2007 Hi Mr Vipul,

Is the Assessee getting the rent reimbursement as HRA if not he can claim the deduction

the deduction says

DEDUCTIONS FROM TOTAL INCOME
What Deductions From Total Income are Available to Taxpayers?
Deduction for Physically Handicapped & Disabled Dependent
Deduction for Medical Treatment of Serious Ailments U/S 80DDB
Deduction U/S 80CCC for new Personal cum-friendly Pension Scheme
Deduction in respect of Repayment of Loan taken for Higher Education
Deduction for Donations Made to National Sports Fund
Deduction of Rents paid U/S 80GG
Deductions for Foreign Exchange Earnings
Deduction U/S 80JJA
Deduction U/S 80JJAA
Deduction on Income from Bank Interest etc
Deduction for Handicapped Persons
Deduction for Donation for 'National Urban Poverty Eradication Fund'
Deduction for Profits from Industrial undertaking or enterprise engaged in Infrastructure Development

DEDUCTIONS FROM TOTAL INCOME
What Deductions from Total Income are available to Taxpayers?
Some of the various deductions available to a taxpayer are enumerated below:-

Deduction for Physically Handicapped & Disabled Dependent
A deduction of Rs.40,000 u/s 80DD is allowed to an Individual or HUF in respect of expenditure incurred on medical treatment of a handicapped dependent.

Now, w.e.f 1-4-04 i.e for A.Y. 2004-05 and subsequent years, a total deduction of Rs.50,000 will be available to the parent or guardian in respect of either medical expenditure incurred on medical treatment of or for the future needs of the disabled or handicapped dependent.

Deduction for Medical Treatment of Serious Ailments U/S 80DDB
With effect from A.Y. 2000-2001 section 80DDB provides that if a resident individual or HUF incurs expenditure for the medical treatment of serious disease or ailment (as may be specified in the I.T rules) for himself or a dependent relative or a member of HUF then a sum of Rs.40,000(Rs. 60,000 if the patient is a senior citizen) shall be allowed as deduction.For availing this deduction of certificate in prescribed form has to be furnished.

Deduction U/S 80CCC for New Personal Cum-Family Pension Scheme
With effect from A.Y 1997-98, a new section namely 80 CCC has been enacted which provides that if an assessee being an individual pays or deposits any amount out of his income chargeable to tax to effect or keeps in force a contract for any annuity plan of Life Insurance Corporation of India for receiving pension from the fund referred to in section 10(23AAB) he shall be allowed a deduction of the amount equal to the deposit or Rs. 10,000 which ever is less.

The amount of pension received in the hands of the contributor or the nominees shall be taxable. However, the commuted amount receivable on maturity of the scheme would be exempt.

However, claim for a rebate u/s 88 for the premium paid on the above policy if he has claimed deduction u/s 80CCC is not allowed.

Deduction in respect of Repayment of Loan Taken for Higher Education
A deduction equal to the amount of repayment of loan taken to pursue higher education or Rs.40,000, whichever is less is allowable u/s 80-E from A.Y 2001-02. However, such repayment should be made from the assessee's taxable income. This deduction is allowable from the year in which the assessee starts repaying the loan till the year in which loan is fully repaid or 7 years, whichever is earlier.

Deduction for Donations made to National Sports Fund
Besides other funds, hundred percent deduction for donations made to National Sports Fund is now available u/s 80-G.

Deduction of Rents paid U/S 80GG
A deduction in respect of any expenditure incurred by an assessee, who is not in receipt of any income falling within clause (13A) of Section 10 of the Act, in excess of 10% of his total income towards payment of rent in respect of any furnished or unfurnished accommodation occupied by him for the purpose of his own residence to the extent of Rs.2,000 per month or 25% of his total income, whichever is less, will be allowed under Section 80GG.