Section 80GG is a little-known section that taxpayers can use to reduce their tax burden by claiming a tax deduction for rent payable (if not part of the HRA salary). This section can be used by either salaried / pensioner or self-employed taxpayer.
Terms of payment of claim The benefit of u / s 80GG for payment of rent
You can claim a tax deduction on U/S 80GG payable at the time of filing tax return only if you satisfy the following conditions:
• The discount is only available to individuals and HUFs
To be eligible for tax benefit for Ried salaried person 80 / g, he should not receive HRA from his employer.
Ensure pensioners or self-employed have no HRA and so they can take advantage of 80GG
It is not own a home in any city where you are employed or carry on your business, including his wife, minor children, self or HUF.Different If you have a house in different cities, you can’t show it as self-possession. You have to consider leaving it – that is – you have to show the rent whether the rent is paid or not.
Additionally, you will need to complete Form 10 to claim Tax Benefit / U/s80G. This form is not to be submitted anywhere but will be kept with you for the record to be shown in the IT section for verification and selection.
Download Automated Income Tax Revised Form 16 Part B For the Financial Year 2019-20 [ This Excel Utility can prepare at time 50 Employees Form 16 Part B in Revised Format ]
You are allowed a discount of 80GG:
Minimum home rent discount in 3 numbers below:
1. Rupees. 5,000 per month [Budget 201 increased from Rs 2,000 to Rs 2,000]
2. 25% of annual income
3. (Rent – 10% of annual income)
Long-term capital gains,10 10% short term capital gain of the department,Section Section 80GG and Exemptions under Section 80C to 80U excluding foreign company income
Download Automated Income Tax Revised Form 16 Part B For the Financial Year 2019-20 [ This Excel Utility can prepare at time 100 Employees Form 16 Part B in Revised Format ]
1. Rupees. 5000 per month – Rs. 60,000
2. 25% of annual income – Rs. 1,25,000
3. (Rent – 10% of annual income) – Rs. 70,000 (1,20,000 – 50,000) Minimum 3 numbers of tax deduction = Rs.60,000
80 GG in the income tax return form The duty exemption under section 80GG is a part of VI 6A and in the ITR forms you have to fill in as required for section 80C.
Can HRA and 80GG tax benefits be claimed together?
If you receive HRA for some part of the financial year but the rent is paid for the whole year, you can
claim the benefit of both HRA and Section 80GG. For the period for which you have received HRA, you should claim tax benefits on it through your employer. For a few months, you will get tax benefit 80 G / tax benefit.
Download Automated Income Tax Revised Form 16 Part A &B For the Financial Year 2019-20 [This Excel Utility can prepare at time 50 Employees Form 16 Part A&B in Revised Format]