If your are a self employed or a salaried individual who is not in receipt of any House Rent Allowance (HRA), and is paying a rent for an accommodation (irrespective whether furnished or unfurnished) occupied for residential use, then you can claim a deduction under this section 80GG of Income Tax Act. But as a pre-condition for availing deduction under this section, 
you or your spouse or your minor child must not own any residential accommodation either in India or Abroad. And the deduction which will be available to you under this section is the least of:-
you or your spouse or your minor child must not own any residential accommodation either in India or Abroad. And the deduction which will be available to you under this section is the least of:-- 25% of the total income or,
- 2000 per month or,
- excess of rent paid over 10% of the total income.
2 comments:
My previous employer Jaypee Fertilizers & Industries Ltd.did not consider my HRA,while calculating my TDS for 2011-12.During the said year,I paid Rs.20,000.00 p.m. for staying in a rented accomodation.Shall I be entitled to claim relief under section 80 GG?
An excellent article.
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