As a taxpayer, there are regularly sure circumstances where pass up a major opportunity to guarantee to reason. Segment 80GG is one of those territories where the greater part of the citizens neglect to understand that a concealed reasoning can be guaranteed. Along these lines, immediately, we should perceive what Section 80GG is about!
What is Deduction 80GG?
Section 80GG is a derivation which a citizen can profit in regard to the house lease paid. It ought to be noticed that no other comparable finding has been profited by the citizens for the equivalent AY, else the open door under this area will be lost. Issues, for example, House Rent Allowance from the boss, and so on., ought to be forgotten so as to guarantee to reason under this segment.
Derivation 80GG Eligibility
There are sure criteria which a citizen must fulfill so as to guarantee derivation under Section 80GG. They are:
Status of the citizen: The advantage of finding under this area is just accessible to individual or HUF. Elements, for example, organizations, association, and so forth., are not permitted to guarantee the advantage of derivation for lease paid.
Work of citizen: The citizen ought to either be utilized in a business or ought to be a salaried individual. On the off chance that he gets House Rent Allowance [Sec 10 (13A)] from his manager, at that point, the advantage under Section 80GG won’t be accessible to him.
Responsibility for: The business spot or office of the citizen ought not to be possessed by the citizen himself, life partner, kids or HUF. The spot of calling/business ought to be possessed by some other gathering.
Different Properties possessed by the citizen: There might be where the citizen might claim property and is at present living at a leased spot. For this situation, the claimed property shouldn’t be appeared Self Occupied and will be regarded to be let out.
The most effective method to guarantee Deduction for House Rent Paid Deduction 80GG
The IT Department offers to find under Section 80GG by choosing the LEAST sum from beneath:
• INR 5, 000/month
• Total Rent Paid LESS 10% of complete pay
• 25% of complete pay.
Presently, we should take a model. Assume Mr. Rajkumar has a yearly pay of INR 4, 00, 000 and has paid a yearly lease of INR 1, 20, 000. Things being what they are, what reasoning will he have under Section 80GG?
Here, we will observe these figures.
FIGURE 1-INR 5000 every month INR 60, 000
FIGURE 2-Total lease – 10% of Total Income= 1, 20, 000 – 40, 000 INR 80, 000
FIGURE 3 – 25% of 4, 00, 000, INR 1, 00, 000
The least of the over three figure will qualify as a conclusion under Section 80GG. Along these lines, in the present case, Mr. Rajkumar will have a derivation of INR 60, 000.
Stay tuned to our page to find out about Deductions and Tax Planning tips!
Complete salary means absolute pay of the assessee touched base at in the wake of permitting all reports including reasonings u/s 80C to 80U with the exception of segment 80GG, and furthermore barring transient capital additions assessable u/s 111A and long haul capital increases
The feature of this Excel Utility is the following:-
1) This Excel Utility can prepare automatic Tax Calculation as per new Finance Budget 2019
2) The Salary Structure as per the All Govt & Non-Govt employees Salary Pattern
3) Automated Individually Salary Sheet for each Employee
4) Automated Income Tax Salary Sheet for each Employee
5) This Excel Utility calculate your House Rent Exemption Calculation U/s 10(13A)
6) Automated Income Tax Form 12 BA
7) Automated Income Tax Form 16 Part A&B for F.Y. 2019-20
8) Automated Income Tax Form 16 Part B for the F.Y. 2019-20