One significant tax deduction available to you is that on house rent. Under Chapter VI-A of the Income Tax Act, 1961, section 80GG is a provision that offers tax reprieve to those people who don’t avail of HRA (house rent allowance). It is beneficial to those employees who don’t get HRA from their employers. Tax exemption under this section depends on the rent amount and the house rent allowance received, the city you live in, your salary, and more. Now that you have read about what is 80GG in income tax, let me tell you about what conditions need to be met to avail the house rent-related deductions under Section 80GG:
You shouldn’t be receiving house rent allowance benefits in your salary.
You are required to be salaried or self-employed.
You should be a HUF (Hindu United Family) member or an individual.
You are required to fill and submit Form 10BA to confirm that you aren’t claiming the advantages of Self-Occupied Property on a home in the same location as you work in or in any other location.
Rent can be claimed if the home you’re renting out is fully-furnished or semi-furnished.
You are required to submit the PAN details of the property owner in case the rent paid is more than Rs.1,00,000 per year,
Under the section 80GG, the least of the below applicable amounts can be claimed:
25 percent of annual salary
Rs.60000 annually (Rs.5000 monthly)
Total rent paid minus 10 percent of the total income
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What is 80GG in income tax?
Tani
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September 17, 2021
2021-09-17T16:26:35+00:00 2021-09-17T18:11:40+00:00Comment
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Taxes
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