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How to Calculate Deduction in respect of Rent Paid u/s 80GG and Their Condition & Eligibility for Claiming Deduction.

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How to Calculate Deduction in respect of Rent Paid u/s 80GG and Their Condition & Eligibility for Claiming Deduction.
Eligible Assessee for claiming deduction u/s 80GG:
Individual Assessee is eligible for claiming deduction u/s 80GG. The individual is either a self-ernployed person or if he is an employee, he is not entitled to any house rent allowance or a rent free accommodation. Deduction available u/s 80GG in respect of Rent Paid residential accommodation for himself and family, whether property is furnished or unfurnished.

Calculation of Amount of deduction in respect of Rent Paid u/s 80GG is as follows:
Amount of deduction is Least of the following:
1.5000 per month
2.Excess of rent paid over 10% of the Adjusted Gross Total Income
3.25% of the Adjusted Gross Total Income

For the purpose of calculation of Adjusted Gross Total Income, we reduced following amount from the Gross Total Income.
1.All deductions permissible u/s 80C to 80U except deduction u/s 80GG,
2.Long-term capital gains,
3.Short-term capital gains (section 111A),
4.Income referred to in section 115A, 115AB, 115AC,115ACA and 115AD.

Conditions for Claiming a Deduction u/s 80GG:

The individual, his or her spouse or minor child (including step/adopted child) or a HUF of which   he/she is a member, does not own any residential accommodation at the place where such an assessee ordinarily resides or at the place where he works or carries on his business or profession.
If the individual owns any residential accommodation at any place, other than the place of residence or   work of the assessee, then such property should not be assessed in the hands of the individual as self-occupied property.
The assessee must file a declaration in Form No. 10BA along with the return of income to claim deduction under section 80GG.

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