60,000 per annum.Ĭondition 2: Rent paid i.e.
In such a case the deduction would be least of the following:Ĭondition 1: Monthly rental limit of Rs 5000 every month i.e. The annual rent being paid by Ramesh is Rs 1.5 lakhs. Ramesh earns 5 lakhs annually (after all deductions) and stays in a rented accommodation for which he is not getting any house rent allowance. Illustration of Tax deduction under Section 80GG 25% of the adjusted gross total income.Total rent paid minus 10% of basic salary.The deduction under Section 80GG is given to the least of the following : Who can claim deduction under Section 80GĪny employee/self-employed person who does not receive House Rent Allowance (HRA) and has not received HRA at any time during the financial year. In order to claim the benefit of this section, you have to fill form 10 BA. You cannot get the benefit of this section if you (or your wife/minor child) own a house property. The maximum deduction permitted under Section 80 GG is Rs 60,000 per annum (Rs 5,000 per month). If you don’t receive HRA (House Rent Allowance) but pay rent, you can still get a tax deduction on the rent paid under Section 80 GG of the Income Tax Act, 1961.
