Generally, HRA is considered as a part of Salary and a taxpayer can claim deduction for HRA. In case you do not receive HRA exemption from your employer and pay rent for your furnished or unfurnished accommodation, then, in that case, you can claim deductions under section 80GG, here are a few conditions that you need to fulfil if you wish to claim tax deductions under Section 80GG: –
- The taxpayer must be employed or salaried.
- You have not received any HRA Exemption during the Financial Year, in that case you can claim deduction under section 80GG.
- You, your spouse, your minor child or a HUF of which you are a member does not own a residential property in the city you are currently residing, performing duties of office or employment or carry on business or profession.
- If you own any residential property at any place, for which your income from House Property is already getting calculated then in that case you will not be allowed any deduction under section 80GG.
Here are the various amounts of deduction that a taxpayer can claim under 80GG: –
- Rs 5,000 per month
- 25% of total Income (income to exclude long-term capital gain, short-term capital gain under section 111A and Income under section 115A or 115D and deductions 80C to 80U. Also, income is before making deduction under section 80GG).
- Actual Rent less 10% of Income (income to exclude long term capital gain, short term capital gain under section 111A and Income under section 115A or 115Dand deductions 80C to 80U. Also, income is before making deduction under section 80GG).