Deductions is respect of rents paid (Section 80GG):
Section 80GG allows the employee to a deduction in respect
of house rent paid by him for his own residence. Such deduction is
permissible subject to the following conditions :-
(a) the employee has not been in receipt of
any House Rent Allowance specifically granted to him which qualifies for
exemption under section 10(13A) of the Act;
(b) the employee files the declaration in Form No.
10BA. (Annexure VIII)
(c) He will be entitled to a deduction in
respect of house rent paid by him in excess of 10% of his total income,
subject to a ceiling of 25% thereof or Rs. 2,000/- per month, whichever
is less. The total income for working out these percentages will be
computed before making any deduction under section 80GG.
(d) The employee does not own:
(i) any residential accommodation himself or
by his spouse or minor child or where such employee is a member of a
Hindu Undivided Family, by such family, at the place where he ordinarily
resides or performs duties of his office or carries on his business or
profession; or
(ii) at any other place, any residential
accommodation being accommodation in the occupation of the employee, the
value of which is to be determined under Section 23(2)(a) or Section
23(4)(a) as the case may be.
The Drawing and Disbursing Authorities should satisfy
themselves that all the conditions mentioned above are satisfied before
such deduction is allowed by them to the employee. They should also
satisfy themselves in this regard by insisting on production of evidence
of actual payment of rent.
