Tax benefit available to an assessee in respect of rent paid by him but is not in receipt of HRA (Section 80GG)

1. Deduction in respect of rent paid: Payment of rent exceeding 10% of Adjusted Total Income in cities.

2. Computation of Adjusted Total Income:

• Gross Total Income
• Less: Long Term Capital Gains
• Short Term Capital Gains
• All other deductions under Chapter VI A except 80GG

3, Conditions:

1. Assessee should not be in receipt of HRA.
2. The assessee, his spouse, minor child, HUF of which he is a member should not own any residential accommodation at the place where he ordinarily resides or at his place of employment or business.
3. The assessee should not own any residential house at any other place and claim the benefit of self occupancy.
4. Assessee should file a declaration in Form 10BA declaring the amount of rent paid and name and address of the person to whom rent is paid.

4. Amount of deduction: Least of the following amount is deductible

• Rent paid Less 10% of Adjusted Total Income, or
• Rs.2000 per month or
• 25% of Adjusted Total Income.