80GG HRA Claim even without HRA Allowance

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Hi team,

How to calculate & claim deduction under 80GG?

Please advise.

Thank you.

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Hi @Swati ,

80GG deductions are allowed as mentioned below:

  1. Rs 5,000 per month

  2. 25% of the adjusted total Income (excluding long-term capital gains, short-term capital gains under section 111A and Income under Section 115A or 115D and deductions under 80C to 80U. Also, income is before making a deduction under section 80GG).

  3. Actual rent less 10% of Income

and to claim:

An employees should not get HRA as a component of salary because of jobs in the informal sector or to self-employed persons. The person claiming this deduction should not own a house in the place of residence.

Hope it helps

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Thanks @Jeevan

True, Just adding to your context.

“80GG is a deduction under Chapter VI-A of the Income Tax Act. It has been introduced to provide relief to those individuals who do not receive any house rent allowance but are paying rent for the stay. Thus, an individual can claim a deduction for rent paid even if he or she does not get house rent allowance.”

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Adding to already said:

You or your spouse or your minor child or HUF of which you are a member – do not own any residential accommodation at the place where you currently reside, perform duties of the office, or employment or carry on business or profession.

In case you have nay self occupied house property no benefit under section 80GG will be allowed.

Besides these assets, any other property that you own would be called a capital asset like land, building, shares, patents, trademarks, jewellery, etc. In order to claim the benefit of this section, you have to fill form 10 BA.

Form 10BA is basically a declaration filed by the taxpayer claiming his deduction under section 80GG. The form is very easily available at all tax offices, the HR department of the employer or it can also be downloaded from various websites.

Below mentioned are the details which the assessee needs to fill. The assessee should always ensure the details are fully accurate and updated.

  • Name of the assessee with PAN.
  • Full address of the premises with Postal Code
  • Residency tenure in months
  • Mode of payment
  • Amount of payment
  • Name and address of the landlord.
  • In case the annual rental is more than 1 lakh for the assessment year, then the [PAN number] of the landlord is mandatory.
  • Declaration to confirm that no other residential accommodation is owned by the taxpayer himself or in name of Spouse / minor child or by the HUF in which he is a member.
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