Dear Sir / Madam.,
Please give formula and Some example for House Rent calculation u/s 80GG...
Thanks in Advance
11 Replies
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177713 Points)
Replied 19 July 2018
S ELAVARASI
(ACCOUNTANT)
(2975 Points)
Replied 19 July 2018
Which condition can avail flat Rs. 5000p.m Without this calculation?
Why the Rs. 5000 for rent deduction?
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177713 Points)
Replied 19 July 2018
80GG (Individual not receiving HRA)
Rent paid for furnished/unfurnished residential accommodation subject to following conditions:
Least of the following shall be exempt from tax:
a) Rent paid in excess of 10% of total income*;
b) 25% of the Total Income; or
c) Rs. 5,000 per month.
That is one of the condition..... max deduction u/s. 80GG is capped at Rs. 60000/- PA
rama krishnan
(12239 Points)
Replied 19 July 2018
rent paid in excess of 10% of total income or
25% of total income or
60000 whichever is less can be claimed as deduction under section 80GG
25% of total income or
60000 whichever is less can be claimed as deduction under section 80GG
S ELAVARASI
(ACCOUNTANT)
(2975 Points)
Replied 20 July 2018
thank you for the details Sir...
But,
Where and when i use the three conditions?
But,
Where and when i use the three conditions?
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177713 Points)
Replied 20 July 2018
Check the amount as per each condition separately......
& finally select one which is least among all three.
Example ... the eligible deduction as per condition 1 is say, Rs. 55,000/- &
As per section 2 is say 75,000/- and third is fixed at 60,000/-.....
So, eligible deduction u/s. 80GG is Rs. 55,000/- ......
S ELAVARASI
(ACCOUNTANT)
(2975 Points)
Replied 20 July 2018
Thank You sir.,
In case its to a business people then what...?
For Example:
i) Mr. A is salaried person. Salary Rs. 500,000. He paid Rent Rs. 60,000 (p.a). What is eligible amount u/s 80GG
i) Mr. X is business person. Profit Rs. 500,000. He paid Rent Rs. 60,000 (p.a). What is eligible amount u/s 80GG
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177713 Points)
Replied 20 July 2018
In both the cases......the result is same (but in second case he must not be getting HRA) ..
Condition. 1. (60000/- Rent paid) - (10% of income i.e. 50000) = Rs. 10,000/-
Condition 2. (25% of income) = 1,25000/-
Condition 3 = 60,000/-
Now least of all three is........... Rs. 10,000/- i.e. eligibility u/s. 80GG
S ELAVARASI
(ACCOUNTANT)
(2975 Points)
Replied 20 July 2018
Than You Sir.,
So, As per above no way for flat deductions if Salaried or Business...
Am I right Sir?
S ELAVARASI
(ACCOUNTANT)
(2975 Points)
Replied 20 July 2018
| Originally posted by : Dhirajlal Rambhia | ||
 |
Correct .... |
 |
Thank You sir...
Can You Give Solution for this one sir...
https://www.caclubindia.com/forum/turn-over-calculation-u-s-44ad--473794.asp
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