Deduction for Rent Paid [Section 80GG]
• Deduction under Section 80GG is available only to individuals (resident or non-resident), including salaried and self-employed persons.
• Not allowed to those claiming HRA exemption under Section 10(13A).
• Deduction can be claimed for rent paid on furnished or unfurnished accommodation used for own residence.
• The deduction is the least of the following:
Rent paid minus 10% of total income,
25% of total income, or
Rs. 5,000 per month (i.e., Rs. 60,000 per year).
• The assessee, his spouse, minor child, or HUF of which he is a member must not own any residential accommodation at the place where he ordinarily resides or performs duties of his office or employment or carries on his business or profession.
• The assessee must also not own a self-occupied residential property at any other location (i.e., one with annual value taken as nil).
• Deduction is allowed only if the assessee furnishes Form No. 10BA electronically.
• Total income is computed after all other deductions under Chapter VI-A, but before deducting the amount under Section 80GG.