In the financial year 2022-23, I paid rent for the first four months (April to July ) then moved to my own new house. Can I claim a deduction u/s 80GG for the four-month rent paid?

C.P. Murugesan

As per section 80GG the Income Tax Act, 1961 (“the Act”), an individual wanting to claim a deduction can do so only if he is earning salary income or is a self-employed professional.

The following are the conditions an individual needs to fulfil to claim deduction under section 80GG of the Act:

·        the individual should not be receiving House Rent Allowance (HRA) as a salary component at any time during the said financial year.

·        Deduction is available in respect of any furnished or unfurnished accommodation; however, it is important that the same rented accommodation should have been occupied by the individual for his own residence.

·        Neither individual himself nor his spouse/minor child/HUF of which he is a member should own any residential house in the same place/location where the individual performs official duties/ordinarily resides/carries causes his own occupation/profession.

·        Form 10BA would need to be filed in order to claim the said deduction.

Provided the above-mentioned requisite conditions are met, the individual may be able to claim the deduction for part of year.

Deduction under section 80GG would be lower of the following:

·        25 per cent of the adjusted total income

·        or Actual rent paid (-) 10 per cent of total income

·        or ₹5,000 per month.

The writer is a Partner with BDO India LLP

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