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hra related

12 August 2019

if one is not getting hra from his company and paying a rent of 120000 per annum and his total salary is 1500000 per annum how much he get exemption us 80 gg

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4 Replies

Kapadia Pravin (17264 Points)
Replied 12 August 2019

Deductions in respect of rents paid.

80GG. In computing the total income of an assessee, not being an assessee having any income falling within clause [13A] of section 10, there shall be deducted any expenditure incurred by him in excess of ten per cent of his total income towards payment of rent [by whatever name called] in respect of any furnished or unfurnished accommodation occupied by him for the purposes of his own residence, to the extent to which such excess expenditure does not exceed five thousand rupees per month or twenty-five per cent of his total income for the year, whichever is less, and subject to such other conditions or limitations as may be prescribed, having regard to the area or place in which such accommodation is situated and other relevant considerations :

Provided that nothing in this section shall apply to an assessee in any case where any residential accommodation is—

[i] owned by the assessee 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 employment or carries on his business or profession; or

[ii] owned by the assessee at any other place, 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.

Explanation.—In this section, the expressions "ten per cent of his total income" and "twenty-five per cent of his total income" shall mean ten per cent or twenty-five per cent, as the case may be, of the assessee's total income before allowing deduction for any expenditure under this section.

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ADITYA MEHROTRA (CA CS DipIFR (ACCA-UK)) (62 Points)
Replied 12 August 2019

Assuming that you meet the conditions as laid down under provisions of 80GG, the least of the 3 will be amount to be taken for 80GG exemption-

1) 5000/- per month

2) Rent paid minus 10% of adjusted total income

3) 25% of adjusted total income

Here adjusted total income is

Gross Total Income

Less

Long Term Capital Gain,

Short Term Capital Gain of 10% category,

Deductions under sections 80C to 80U except section 80GG and income of foreign company.

First calculate your adjusted total income and put in above 3 points and least of them will be the amount eligible for 80GG.

Abhinav Jain (141 Points)
Replied 12 August 2019

if adjusted total income in this is 1500000 and rent paid is 120000 both are per annum than how much i get the rebate as per section 80 gg please give me exact figures

Nayan kumar N (18 Points)
Replied 12 August 2019

actual rent paid is 120000
Total income for deduction u/s 80GG 15,00,000

least of the following is exempt
Rent paid in excess of 10℅ of total income is 0
25% of total income Rs 375000
limit specified Rs 60000

therefore the Deduction under 80GG is 0 ( Zero)
no deduction can be claimed

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