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sec.10(13A) vs Sec.80GG

Open uri20170510 32134 blndvi?1494421794 Raja asked about 2 years ago

Dear Friends, I am in receipt of HRA. But i dont want to get exemption u/s.10(13A). rather i want to get deduction u/s.80GG since this is beneficial to me. But when i refer sec.80GG it says the person should not receive HRA. so i confused here. tell me whether i can get deduction u/s.80GG if i offer my HRA fro tax. Thank you in advance.

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5 Answers
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Surbhi answered about 2 years ago

Deductions is respect of rents paid : Under Section 80GG, an Individual can claim deduction for the rent paid even if he don’t get HRA. Not many people are aware of this deduction. Section 80GG allows the Individuals 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 Individual has not been in receipt of any House Rent Allowance from his employer specifically granted to him which qualifies for exemption under section 10(13A) of the Act; (b) the Individual files the declaration in Form No. 10BA. (c) The employee does not own: (i) any residential accommodation himself or by his spouse or minor child or where such Individual 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 Individual, the value of which is to be determined under Section 23(2)(a) or Section 23(4)(a) as the case may be. (d) 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 (Rs. 5000/- Proposed wef F.Y. 2016-17), whichever is less. The total income for working out these percentages will be computed before making any deduction under section 80GG. In other word eligibility will be least amount of the following :- 1) Rent paid minus 10 percent the adjusted total income. 2) Rs 2,000 per month (Rs. 5000/- Proposed wef F.Y. 2016-17). 3) 25 percent of the adjusted total income. The deduction will also not be available to an assessee if any residential accommodation is owned by the assessee at any other place, which he is occupying, and the concessions in respect of self-occupied house are claimed by him for that property. In such a case, no deduction will be allowed in respect of the rent paid, even if the person does not own any residential accommodation at the place where he ordinarily resides.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Surbhi answered about 2 years ago

Section 80GG allows the Individuals 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 Individual has not been in receipt of any House Rent Allowance from his employer specifically granted to him which qualifies for exemption under section 10(13A) of the Act; (b) the Individual files the declaration in Form No. 10BA. (c) The employee does not own: (i) any residential accommodation himself or by his spouse or minor child or where such Individual 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 Individual, the value of which is to be determined under Section 23(2)(a) or Section 23(4)(a) as the case may be. (d) 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 (Rs. 5000/- Proposed wef F.Y. 2016-17), whichever is less. The total income for working out these percentages will be computed before making any deduction under section 80GG. In other word eligibility will be least amount of the following :- 1) Rent paid minus 10 percent the adjusted total income. 2) Rs 2,000 per month (Rs. 5000/- Proposed wef F.Y. 2016-17). 3) 25 percent of the adjusted total income. The deduction will also not be available to an assessee if any residential accommodation is owned by the assessee at any other place, which he is occupying, and the concessions in respect of self-occupied house are claimed by him for that property. In such a case, no deduction will be allowed in respect of the rent paid, even if the person does not own any residential accommodation at the place where he ordinarily resides. > 80GG will not be applicable in case, you receive the HRA from your employer.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 megha answered about 2 years ago

hello, Section 80GG allows the Individuals 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 Individual has not been in receipt of any House Rent Allowance from his employer specifically granted to him which qualifies for exemption under section 10(13A) of the Act; u can avail;10(13A)

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Open uri20170510 32134 ng4pv?1494421709 SONIYA answered about 2 years ago

**Section 10(13A)** is about HRA exemption to salaried taxpayer and to claim exemption he needs to stay in rented house and pay rent. In case one stays in an own house, nothing is deductible and the entire amount of HRA received is subject to tax. Exemption from HRA will be lowest of the following three factors: 1. Actual HRA received from the employer 2. Actual house rent paid by employee minus 10% of basic salary 3. 50% of the basic salary if employee live in a metro or 40% of basic salary if lives in a non-metro. **80GG** allows Individuals a deduction in respect of house rent paid by him for his own residence provided Individual has not been in receipt of any HRA from his employer which qualifies for exemption under section 10(13A) of the Act, i.e. individual who are neither getting benefit of HRA and nor they have claimed the expense of rent under any other section of the income tax Act qualifies for deduction under this section. Exemption U/s 80GG will be lowest of the following three factors 1) Rent paid minus 10 percent the adjusted total income. 2) Rs 2,000 per month (Rs. 5000/- Proposed wef F.Y. 2016-17). 3) 25 percent of the adjusted total income. ** > Therefore since you are in receipt of HRA , you are not eligible for > deduction U/s 80GG even if you offer HRA for tax. **

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 mayook answered about 2 years ago

hai, Section 80GG allows the Individuals 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 Individual has not been in receipt of any House Rent Allowance from his employer specifically granted to him which qualifies for exemption under section 10(13A) of the Act; u can avail;10(13A)

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