My parents are retired (senior citizens). My mother purchased a 32-year-old flat from Tata group through online auction in March 2022 and spent ₹14 lakh on renovation.

a)      Can any depreciation be claimed during filing ITR?

b)     Can my father claim deduction under 80GG?

c)      For four months from April 2022 to July 2022, they were in a rented house before moving to their own house in August 2022. Can both my parents claim deduction under 80GG for rent paid for the four months?

Response to a): Depreciation on building is allowed in the case of your mother only when such building is utilised in her business or profession. If your mother is not engaged in any business or profession. then depreciation cannot be claimed on the building. 

Response to b): Section 80GG provides for deduction for amount spent towards rent on accommodation for salaried or self-employed taxpayers who do not receive House Rent Allowance (HRA).  Pensioners can also avail the benefit under Section 80GG.  The deduction cannot be claimed in case the house belongs to the spouse or minor child of the taxpayer.  The limit for deduction is ₹5,000 per month. Further, Form 10BA is required to be submitted to claim 80GG.

Response to c): For the period from April 2022 to July 2022 during which accommodation was rented, your father or mother who was paying the rent can claim deduction under Section 80GG. If both of them have a joint agreement with the landlord for payment of rent, then both can claim deduction under section 80GG subject to the limits provided therein. Further, they need to furnish form 10BA separately. 

The author is Partner, Deloitte India

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