Learn all about the rented 80GG tax benefits. Home rent allowance, or commonly known as HRA, is
an amount that employers pay as part of their employees' salaries. This is mainly done because it helps
to provide tax benefits to the workers in case of payment for housing every year.
As per the provisions of Income Tax Section 10 (13A) of the IT Act, H.R.A. can be quite beneficial for taxpayers. As per Income Tax law, only salaried persons can get HRA and self-employed people are also exempt from the same.
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However, not everyone can take advantage of HRA. 80GG was introduced in the department for the convenience of individuals with W.r.t rent. Section 60 is a special provision under Chapter VI -A of the Income-tax Act, 1961, which recovers the tax of those who do not receive house rent allowance.
Is there any discount under section 80GG?
U/s 80G entitled to get the benefits to the taxpayers to claim discount for rent paid for furnished or unfinished accommodation to be occupied by the taxpayer for their own accommodation. Claims under the department can only be made where there is a house rent allowance (HRA).
In case of any furnished or incomplete dwelling occupied by him for the purpose of his own residence, more than 10% of his total income will be spent on rent.
5000 per month or
25% of his total income for the year
Such deductions shall be made subject to other conditions or limitations determined on the basis of the area or place in which the accommodation is located and other relevant considerations.
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What do you mean by consolidated total income?
Consolidated total income refers to income that is not including long-term and short-term capital gains. Only short-term capital gains that are taxed at 10% will be excluded, as is the case in US 111.
Also, adjusted gross income refers to income / u 115sA to 115D under and 80C to 80U excluding income
Consolidated Gross Income = Total Gross Income - Long Term Capital Gains - Short Term Capital Receipts Under 10% Tax - Exemption under Sections 80C to 80U - Income of Foreign Companies.
80CG will not be included in discounts from 80C it will be deducted from Chapter VI- A including Section 80C.
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When will section 80GG not be applicable?
Section 80GG will not apply to any residential accommodation wherever:
Where the assessee or his wife or a minor child is owned or where the designated family is usually a member of the Hindu undivided family, where he is usually in charge of his office or job or running his business or running his business or profes¬sion; Or
Elsewhere, the appraiser arranges for the appellant to be in possession
Who is eligible to claim an exemption under Section 80GG?
Tax Only individuals and Hindu Undivided Families (HUFs) are eligible to claim this tax exemption.
Businesses or other enterprises cannot take advantage of the same tax deduction after paying rent in a certain financial year.
Taxpayers who are either salaried persons or self-employed can get benefits from this provision U/s 80GG.
If a person has no income to speak of, he will be disqualified from seeking income tax benefits under Section 80 even if he pays the rent.
If a person's salary includes HRA payments, he or she is ineligible to claim an income tax deduction in respect of residential rent.
Even if someone does not receive HRA for a large part of the year, acquiring the same for only one month disqualifies him/her from claiming this annual recovery.
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Can individuals under sections 80GG claim a waiver with their parents?
If any taxpayers living with their family including parents on property owned by parents are also entitled to claim Section 80GG benefits.
• However, they have to sign a rental agreement with his / her parents.
• Also, the amount is shown as rent will be taxable when the parents pay their annual tax.
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Can NRI claims be exempted under section 80GG?
Non-resident Indians are also eligible to claim tax benefits under this provision but in order to apply for them, they must pay rent for any property in India.
What are the details to be provided while claiming deduction under section 80GG?
Those wishing to avail of this duty exemption must first submit a duly filled Form 10BA to the Government. This form is a declaration that does not claim benefits from self-occupied property anywhere separately filed.
The details required for submission are:
Determinant name
Pan
Complete address of the premises with postal code
Term (in months)
The means of payment
Pay that amount
Landlord's name
Landlord's address.
If the rent is more than Rs 1 lakh for the assessment year, the landlord's PAN is mandatory.
A declaration confirms that the property of any other home is not owned by the taxpayer himself or in the name of his / her spouse or minor child or of any member of the HUF.
Feature of this Excel Utility are-
$ This Excel Utility can prepare at a time Tax Computed Sheet as per 115 BAC
$ Individual Salary Structure as per the W.B.Govt Employees Salary Pattern
$ Automated Income Tax H.R.A. Calculation U/s 10(13A)
$ Automated Income Tax Arrears Relief Calculator U/s 89(1) with Form 10 E from the F.Y.2000-01 to F.Y. 2021-22 (Updated Version)
$ Automated Form 16 Part A&B and Part B for the F.Y.2021-22]
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