Rent deduction for residential accommodation limited to amounts above a percentage of income and subject to ownership exclusions.

Deduction for rent paid is allowed for an individual in computing total income for accommodation occupied as residence, limited to rent exceeding a prescribed percentage of total income and subject to a statutory upper cap; prescribed rules may further limit the deduction by reference to area or place. Ownership exclusions prevent the deduction where the accommodation is owned by the assessee, spouse, minor child, or HUF at the place of ordinary residence or duties, or where the assessee owns accommodation elsewhere whose value is determined under the valuation provision. Certain Schedule III income earners are also excluded.

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