Steps to claim deduction for rent paid under Section 80GG

NEW DELHI: The Section 80GG allows taxpayers to claim the deduction for rent paid for furnished or unfurnished accommodation occupied by the taxpayer for own residence. The claim under Section can only be made in cases where House Rent Allowance (HRA) is not a part of taxpayer's salary.

To be eligible to claim deduction under this section, a taxpayer must:

* Be self-employed or salaried

* Have not received HRA at any time during FY for which claim is made

* Taxpayer does not own any residential accommodation at the place where he/she currently reside, perform duties of office, or employment or carry on business or profession

* No deduction under section 80GG will be allowed in case of taxpayer own any residential property at any place, for which his/her Income from house Property is calculated under applicable sections (as a self-occupied property)

To claim benefit under Section 80GG, taxpayers need to file Form 10BA with details of payment of rent.

1. What is Section 80GG?Section 80GG under the Income Tax Act, 1961, provides tax relief to those individuals who do not receive any house rent allowance but are paying rent for the stay.
2. Who can claim deduction under Section 80GG?Taxpayers who are salaried but do not receive HRA or those who are self-employed can claim deduction under Section 80GG for paying rent for their stay.
3. Can I claim both 80GG and HRA?No. As per section 80GG, only those individuals who pay rent but do not receive HRA are allowed to claim deduction under this section.
4. Can I pay rent to my wife and claim HRA?Yes, you can pay rent to wife or parents to claim HRA tax exemption. But rent paid will be counted as spouse or parent's income and they must disclose the income in their

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