Income Tax Rules: Living in a rented house and not getting HRA?

Income Tax Rules HRA: Generally, people who are employed get HRA as a part of the salary, and the taxpayers who live on rent can take deduction of the rent paid in the income tax sections. But do you know that people who are not dependent on salary i.e. those who have their own business, or those who take salary but do not get HRA but they live on rent, such people can also deduct the income tax paid in the form of rent. can take in. Let’s know how?

Know what does section 80GG of the Income Tax Act 1961 say?
Manish Malhotra (CA) informed that as per section 80G of the Income Tax Act 1961, deduction can be made from income in respect of payment of rent made on behalf of the taxpayer for his own residence, whether the house is furnished or No. That is, under the Income Tax Act, you can take tax relief for the payment of rent.

Let us now know how much deduction a taxpayer can avail under section 80GG of the Income Tax Act, 1961? Eligible amount of deduction under 80GG- Whichever is less can be deducted from income only:

– Rupee. 5,000 per month,
– 25% of the total income

Less 10% of the total income from the actual rent paid (‘ten per cent of the total income’ and ‘twenty five per cent of the total income’ means the total income of the assessee before deduction for any expenditure)

Terms and conditions for claiming deduction under this section

  • There are also terms and conditions for claiming deduction under this section.
  • The taxpayer is self-employed or salaried.
  • Taxpayers he has not received HRA at any time during the year for which he is claiming 80GG.
  • He has an office at the place where he is currently residing, or carries on the duties of employment there, or carries on business or profession and that residence is his or his spouse or his minor child or HUF of which he is a member , does not belong.
  • You have to file Form 10BA with the details of payment of rent.
  • No deduction is allowed under section 80GG if he holds any residential property at any place for which his income is taxable under other section

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