Deduction in respect of Rent Paid [Sec. 80GG]

1Eligible AssesseeIndividual
2ConditionThe condition for deduction in respect of rents paid is given below.
3Maximum DeductionAmount of deduction is also given below.

The deduction in respect of rent paid is available to Individual with effect from assessment year 1998-99.
Conditions :
(i) The assessee is not being in receipt of any house rent allowance following under clause (13A) of section 10 from his employer.
(ii) The expenditure incurred (for the purpose of his own residence) by way of rent for any furnished or unfurnished accommodation is in excess of 10% of his total Income after allowing all deductions except deduction under this section.
(iii) The assessee or his spouse or minor child or an HUF of which he a is a member does not own any accommodation at the place where he ordinarily resides or performs duties of his office or employment or carries on his business/profession.
(iv) If the assessee owns any accommodation at any place other than the place of employment or business and such accommodation is not in the occupation of the assessee and shall not be assessed in his hands as self occupied property.

Deduction : Least of the following :–
(i) Rent paid minus 10% of adjusted total income
(ii) 25% of adjusted total income
(iii) Rs. 2,000 p.m.

Adjusted Total income : Gross Total Income as reduced by :
(a) Long term Capital gain, if any, included in the Gross Total Income
(b) all deduction under chapter VIA (Section 80CCC to 80U) other than the deduction under this section.
(c) any income referred to in sections 115A to D included in the Gross Total Income.

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