please tell me about 80-GG

This query is : Resolved

PARDEEP SINGH (Querist)
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25 December 2008 Can you please through some light on 80-GG Section.becuse i want to cliam rent paid by me as deduction in my return can I. Please reply me soon.

CA. Dashrath Maheshwari

CA. Dashrath Maheshwari (Expert)
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25 December 2008 Under section 80GG of the Act an assessee is entitled to a deduction in respect of
house rent paid by him for his own residence. Such deduction is permissible subject to
the following conditions :-
(a) the assessee has not been in receipt of any House Rent Allowance specifically
granted to him which qualifies for exemption under section 1.0(13A) of the Act;
(b) the assessee files the declaration in Form No. 10BA. (Annexure-VII)
(c) He will be entitled to a deduction in respect of house rent paid by him in excess of
10 per cent of his total income, subject to a ceiling of 25 per cent thereof or Rs.
2,000 per month, whichever is less. The total income for working out these
percentages will be computed before making any deduction under section 80GG.
(d) The assessee does not own :
(i) any residential accommodation himself or by his spouse or minor child or
where such assessee is a member of a Hindu Undivided Family, by such
family, at the place where he ordinarily resides or performs duties of his office
or carries on his business or profession; or
(ii) at any other place, any residential accommodation being accommodation in the
occupation of the assessee, the value of which is to be determined under clause
(a) of sub section (2) or, as the case may be, clause (a) of sub-section (4) of
section 23 :
The Drawing and Disbursing Authorities should satisfy themselves that all the conditions
mentioned above are satisfied before such deduction is allowed by them to the assessee.
They should also satisfy themselves in this regard by insisting on production of evidence
of actual payment of rent.