Section 80GG ITA 1961 provides DEDUCTION for HOUSE RENT PAID by salary…

Question

Section 80GG ITA 1961 provides DEDUCTION for HOUSE RENT PAID by salary earners NOT receiving HRA:

Accepted Answer

D.

1. Section 80GG Income Tax Act 1961 provides DEDUCTION for HOUSE RENT PAID by individuals NOT receiving HRA (House Rent Allowance) or rent-free accommodation.
2. ELIGIBILITY: individuals or HUF; salaried without HRA; self-employed.
3. DEDUCTION = LEAST OF:
4. (a) Rs 5,000 per month (Rs 60,000 per annum) — increased by Finance Act 2016 from Rs 2,000;
5. (b) 25% of total income (before this deduction);
6. (c) ACTUAL RENT PAID MINUS 10% of total income.
7. CONDITIONS:
8. (i) Self/spouse/minor child should not OWN a residence at place of employment;
9. (ii) Self should not own any residence in place where employment / profession exercised;
10. (iii) Declaration in Form 10BA.
11. Hence option A is correct.
_Source: CS Executive Paper 4 Tax Laws (ICSI BoS) + Income Tax Act 1961 + CGST Act 2017 — Income Tax Act 1961, Section 80GG_