Deduction u/s 80gg

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gaurav (Querist)
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13 September 2014 I am a Army officer and not getting H.R.A but provided me a accommodation (quarter)for which they are charging Rs. 1200 P.M.

Please tell me whether i can claim deduction u/s 80GG if i am not owing any house anywhere in india.

CA VISHWAKEERTHI.P.S.

CA VISHWAKEERTHI.P.S. (Expert)
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13 September 2014 Yes you can claim deduction u/s 80GG

Amount of deduction will be least of
i) Rent paid - 10% adjusted total income
ii) Rs 2000 PM
iii) 25 % of Adjusted total income

Assessee should file a declaration in form 10BA , declaring the amount of rent paid and name and adress of the person to whom rent is paid.

Form 10BA for reference :
http://law.incometaxindia.gov.in/DITTaxmann/IncomeTaxRules/pdf/itr62Form10BA.pdf

gaurav

gaurav (Querist)
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20 September 2014 Sir are u sure?
and what if he owns a house at any other place other than a place where he renders his services

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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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20 July 2024 Under Section 80GG of the Income Tax Act, taxpayers who do not receive House Rent Allowance (HRA) and do not own a residential accommodation in the place where they reside for work can claim deduction for rent paid towards accommodation. Here's how it applies to your situation as an Army officer:

### Eligibility Criteria for Section 80GG:

1. **Non-Receiving HRA**: You must not receive any House Rent Allowance (HRA) from your employer during the financial year for which you are claiming the deduction.

2. **No Ownership of Residential Property**: You should not own a residential house in the city where you are employed or any other location where you conduct your duties. This includes ownership of a self-occupied property, a property where your family resides, or any property from which you derive income.

3. **Rent Paid**: You should actually incur expenses towards rent for residential accommodation occupied by you during the financial year.

### Conditions for Claiming Deduction:

- As an Army officer, if you are provided with accommodation (quarter) for which you are charged Rs. 1,200 per month, you can claim deduction under Section 80GG provided you meet the following conditions:

- **Non-Availability of HRA**: You do not receive any HRA as part of your salary package.

- **No Ownership of Residential Property**: You do not own a house in the city where you are stationed or anywhere else.

### Amount of Deduction:

- The deduction under Section 80GG is the least of the following amounts:

a. Rent paid minus 10% of total income.

b. 25% of total income.

c. Rs. 5,000 per month.

### Example Calculation:

Let's assume your total income (excluding allowances) is Rs. 7,00,000 per year and you pay rent of Rs. 14,400 per year (Rs. 1,200 per month).

- **Step 1**: Calculate 10% of total income: 10% of Rs. 7,00,000 = Rs. 70,000.

- **Step 2**: Calculate 25% of total income: 25% of Rs. 7,00,000 = Rs. 1,75,000.

- **Step 3**: Calculate actual rent paid: Rs. 14,400.

- **Step 4**: Identify the least amount among the three:

- Rent paid minus 10% of total income = Rs. 14,400 - Rs. 70,000 = Rs. 0 (since this is negative, it's not applicable).

- 25% of total income = Rs. 1,75,000.

- Rs. 5,000 per month = Rs. 60,000 per year.

- **Conclusion**: The eligible deduction under Section 80GG would be Rs. 14,400 (actual rent paid), subject to the maximum limit of Rs. 5,000 per month or Rs. 60,000 per year.

### Ownership of House Elsewhere:

If you own a house in another place (not the place of your employment), you would not qualify for deduction under Section 80GG for the place where you are employed, even if you do not occupy that house. Section 80GG specifically requires that you do not own any residential house in the place where you are claiming the deduction.

### Conclusion:

You can claim deduction under Section 80GG for the rent paid towards the accommodation (quarter) provided by the Army, provided you meet the conditions of not receiving HRA and not owning any residential house in the place where you are employed. Ensure to maintain rent receipts and necessary documents to support your claim during income tax filing.