Hra exemption by a.o. while relief u/s 89(1)

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Querist : Anonymous

Querist : Anonymous (Querist)

12 December 2011 What documents are required by an A.O. as regards to HRA exemption while considering relief u/s 89(1) for salary received in arrears by a govt. employee for previous years 1999-2000 to 2008-2009?

CS Bijoy

CS Bijoy (Expert)
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16 December 2011 Deduction under section 80GG for house rent paid:Deduction u/s 80GG is available if following condition are satisfied

Deduction is available to Individual Assessee only.
He has not received HRA(house rent allownace ) from his employer if he is a salaried person otherwise he should be self employed.
He has paid house rent for his own residence.
He or his spouse or his minor child or HUF(of which he has a member) should not have a residential house where he ordinarily resides or performs duties of his office or employment or carries on his business or profession;
He should not have a house owned by him, which is under his occupation and value of that is not being taken as nil under section 23(2)(a) or 23(4).
A declaration on Form 10BA should be submitted .
so if conditions are satisfied then he can claim deduction u/s 80GG for house rent paid

Amount of deduction:Least of the following is deductible u/s 80GG

Rs 2000 per month for the Assessment year 1987-88 onwards.
25 % of total income
the excess of actual rent paid over 10 % of total income
Total Income means income excluding long term and short term gain under section 111A and income referred to in section 115A or 115D but before making any deduction under section 80C to 80U.