Section 80GG of Income Tax Act
Under Section 80GG deduction to those who do not avail house rent allowance. An individual should reside in a rented property and not own property in the any location to claim a deduction.
This deduction is allowed to salaried and self-employed professionals / business owner.
Individuals residing on their parents' property, are also eligible to claim benefits. However, such individuals should sign a rental agreement with their parents and give rent to them. The rental amount paid to their parents will be taxable when they file their ITR.
The lowest of these will be considered as the deduction.
- Rs.5,000 per month or 60,000 per year.
- 25% of the total income.
- Actual rent less 10% of income.
A declaration that no other house property is owned by the assessee himself or in the name of Spouse/minor child or by the HUF of which he is a member.
You will be required to file Form 10BA with details of the payment of rent.
You have not received HRA from an employer at any time during the year. The HRA component should not form part of your salary.
It is applicable only an Old Regime.