Rent claim in it return

This query is : Resolved

DENNIS (Querist)
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05 August 2014 Dear Sir,
I am working with a MNC. Let me know how can I fill rent amount I paid in IT return (8GG). When I am filling this area the amount is showing maximum Rs.24,000/- only. Actually I paid nearly 1,62,000/- per year.

CA PRIYUL SHAH

CA PRIYUL SHAH (Expert)
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05 August 2014 Maximum Allowable Limit is Rs.24000 U/s 80GG

Eligibility for 80GG tax rebate

If you are a salaried individual, a self employed person or an HUF you can get deduction under section 80GG on the rent you pay if you satisfy the following conditions:

- More than 10% of your annual income is spent on rent.

- Neither you nor your spouse or a minor child owns a house at the place where you are ordinarily residing.

- If you own a house at any other place you have not been claiming tax concession on income from that house (making annual value of it nil for computing income from house property).

You would have to submit a declaration in form 10BA and enter amount while filing Income Tax Returns in order to claim this tax deduction.

Maximum deduction limit under 80GG

The least of the following three can be claimed:

- Rs 2,000 per month

- 25% of total income (total income except from long term capital gains and after all chapter VI A deductions have been accounted for, except 80GG, of course)

- Actual rent minus 10% of total income (calculated as above)