Section 80GG Deduction on Rent Paid

section 80gg

Deductions are regard of rents paid: Under Section 80GG, an individual can guarantee the finding for the lease paid regardless of whether he doesn’t get HRA. Relatively few individuals know about this derivation Under Section 80GG.

Area 80GG enables the Individuals to a derivation in regard to house lease paid by him for his own residence. Such deduction is allowable subject to the accompanying conditions:

  • The individual has not been in receipt of any House Rent Allowance from his boss particularly conceded to him which fits the bill for exclusion under area 10(13A) of the Act.
  • The individual files the announcement in Form No. 10BA.
  • The worker does not claim:

(i) Any residential convenience himself or by his life partner or minor tyke or where such Individual is an individual from a Hindu Undivided Family, by such family, at where he commonly lives or performs obligations of his office or carries on his business or calling; or

(ii) At some other place, any residential arrangement being a convenience in the control of the Individual, the estimation of which is to be resolved under Section 23(2)(a) or Section 23(4)(a) all things considered.

  • He will be qualified for a derivation in regard of house lease paid by him more than 10% of his aggregate wage, subject to a roof of 25% thereof or Rs. 2,000/ – every month (Rs. 5000/ – wef F.Y. 2016-17), whichever is less. The aggregate pay for working out these rates will be processed before making any deduction under segment 80GG. In another word, qualification will be the minimal measure of the accompanying:
  1. Rent paid short 10 percent the balanced aggregate wage.
  2. Rs 2,000 every month (Rs.5000/ – wef F.Y. 2016-17).
  3. 25% of the balanced aggregate pay.

The derivation under segment 80GG will likewise not be accessible to an assessee if any residential settlement is possessed by the assessee at whatever another place, which he is involving, and the concessions in regard of the self-involved house are asserted by him for that property. In such a case, no finding will be permitted in regard to the lease paid, regardless of whether the individual does not claim any residential convenience at where he conventionally dwells.

What is the balanced aggregate income under area 80GG?

The balanced aggregate income implies:

Net Total Income


Long haul Capital Gain,

Here and now Capital Gain of 10% classification,

Findings under areas 80C to 80U aside from segment 80GG and pay of the remote organization.

Conclusion – Limit under Sec. 80GG has not kept pace with the cutoff points under Sec. 10(13A) clearly in view of the point of confinement under Sec. 10(13A) could be the topic of amendment by notice, while the point of confinement under Sec. 80GG is stipulated in the statute itself with the goal that a correction to the law would be required for upgrading the point of confinement.

Section – 80GG, Income-tax Act, 1961-2014

Derivations in regard to rents paid.

Section 80GG of income tax act: In registering the aggregate income of an assessee, not being an assessee having any salary falling inside proviso (13A) of segment 10, there will be deducted any use caused by him more than ten for each penny of his aggregate pay towards installment of lease (by whatever name called) in regard of any outfitted or empty convenience possessed by him for the motivations behind his own habitation, to the degree to which such overabundance use does not surpass [five] thousand rupees for every month or twenty-five for each penny of his aggregate wage for the year, whichever is less, and subject to such different conditions or restrictions as might be endorsed, having respect to the region or place in which such settlement is arranged and other applicable contemplations:

Given that nothing in this segment will apply to an assessee regardless where any residential settlement is—

(i) Owned by the assessee or by his mate or minor kid or, where such assessee is an individual from a Hindu unified family, by such family at where he conventionally lives or performs obligations of his office or work or carries on his business or calling; or

(ii) Owned by the assessee at some other place, is a settlement in the control of the assessee, the estimation of which is to be resolved understatement (an) of sub-section(2) or, by and large, provision (an) of sub-segment (4) of segment 23.

Note: In this section, the articulations “10% of his aggregate wage” and “25% of his aggregate pay” will mean 10% or 25%, by and large, of the assessee’s aggregate salary previously permitting a finding for any use under this segment.