Section 80 IA of Income Tax
Updated on : Aug. 27, 2022 - 3 p.m. 17 min read.
Section 80GG of the Income Tax Act, 1961 is a provision that provides tax deductions to individuals who do not receive House Rent Allowance (HRA) from their employer, but still pay rent for their accommodation. This section is particularly beneficial for self-employed individuals or individuals who are not eligible for HRA.
Under section 80GG, an individual can claim a deduction for the rent paid for their accommodation. The deduction is available for a maximum amount of Rs. 5,000 per month or 25% of the individual's total income, whichever is lower. It is important to note that the individual cannot claim any other deduction for the rent paid under any other section of the Income Tax Act.
Section 80GG is a deduction under Chapter VI-A of the Income Tax Act, 1961. It has been introduced to provide relief to those individuals who do not receive any house rent allowance but are paying rent for their stay. Thus, an individual who is a self-employed person or who does not receive HRA can claim a deduction under this section.
It is a declaration that has to be filed by an individual who wants to claim a deduction under section 80GG for rent paid on rental property.