Rent paid deduction is limited by ownership exclusions, prescribed conditions, and a statutory ceiling on allowable relief.

Deduction in respect of rent paid is available in computing total income where rent has actually been paid for residential accommodation occupied by the assessee for his own use, subject to declaration in the prescribed form and prescribed conditions. The deduction is limited to the least of actual rent reduced by ten per cent of total income, a monthly ceiling of Rs. 5,000, or twenty-five per cent of total income, and is denied where the assessee or specified family members own residential accommodation at the relevant place or where the assessee receives exempt house rent allowance.

---

---

---