rent claim deduction

This query is : Resolved

CA.GAURAV SACHWANI (Querist)
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07 July 2009 what is the maximum amount or percentage of claiming rent deduction for an individual whose total income consists of only salary income

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Guest (Expert)

07 July 2009 You can claim maximum exemption as in rent, when you produce a rent receipts @ 60% of your Basic salary.

Nazir

Nazir (Expert)
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07 July 2009 it is 40% of basic salary for non metro and 50% of basic salary for metro cities...your HRA and actual rent paid also need to consider..

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CA Nitin Wadhwani

CA Nitin Wadhwani (Expert)
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07 July 2009 The deduction of rent can claimed under 2 sections viz 10(13A) and 80GG.

U/s 10(13A) - If the person is in receipt of HRA.

The deduction is least of following:

1)50% of salary(if residing in metros) or else 40%.

2)HRA received.

3)Rent Paid - 10% of Salary.

Salary = Basic + DA(part which forms part of retirement benefits) + commission on turnover achieved by employee.

U/s 80GG - If the person is not in receipt of HRA.

1)25% of GTI

2)2000/- per month

3)Rent paid - 10% of GTI.

GTI = Normal GTI - LTCG u/s 112, STCG u/s 111A - lottery income - all other deductions under chapter VIA.