Deduction on rent paid
This query is : Resolved
13 December 2016
Hello Experts
I am a self employed. I am paying rent of Rs15000/-pm and showing the amount in my profit & loss account on account of rent paid.
As per my knowledge I can claim deduction of rent paid under Income Tax u/s 80GG.
Now my question are:
How can I claim deduction under Chapter VI?
I have showed the amount in Profit and Loss in debit side.
Please guide.
Regards
I am a self employed. I am paying rent of Rs15000/-pm and showing the amount in my profit & loss account on account of rent paid.
As per my knowledge I can claim deduction of rent paid under Income Tax u/s 80GG.
Now my question are:
How can I claim deduction under Chapter VI?
I have showed the amount in Profit and Loss in debit side.
Please guide.
Regards
13 December 2016
You can claim for sure if you're not in receipt of HRA from your employer. (You're not employed, so need not worry at all).
Since you debited the rent, which is purely personal, you need to treat it as a disallowed expense citing it as personal in nature or else, treating it as expense in P &L, show it as drawings.
Then limit for sec 80 GG per annum is- (For FY 2016-17)
1. Rs. 60,000 (12 X 5000 per month)
2. Actual rent Paid
3. Rent Paid- (10% of Gross Total Income)
whichever is less
Since you debited the rent, which is purely personal, you need to treat it as a disallowed expense citing it as personal in nature or else, treating it as expense in P &L, show it as drawings.
Then limit for sec 80 GG per annum is- (For FY 2016-17)
1. Rs. 60,000 (12 X 5000 per month)
2. Actual rent Paid
3. Rent Paid- (10% of Gross Total Income)
whichever is less
13 December 2016
You can not claim entire rent paid as expenses. While computing income Same to be added back.
You have to claim rent deduction in 80GG
You have to claim rent deduction in 80GG
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