Deduction in respect of rent paid - (New) Section 134 / (Old) Section 80GG

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....ually. • The accommodation must be occupied by the assessee for his own residential purposes. • For the purposes of claiming deduction in respect of rent paid, the assessee shall file declaration in Form No. 31. Quantum and Monetary Ceiling of Deduction [ Section 134(2) ] Deduction = Least of the following amounts: • Actual Rent Paid − 10% of Total Income (computed before allowing deduction under Section 134); or • Rs.5,000 per month (i.e., Rs.60,000 for the tax year, if rent is paid throughout the year); or • 25% of Total Income (computed before allowing deduction under Section 134). Prescribed Conditions and Administrative Restrictions [ Section 134(3) ] ....

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....essee; • (b) such allowance is to such extent as may be prescribed having regard to the area or place in which such accommodation is situated and other relevant considerations; [ refer this chapter ] • (c) the residential accommodation occupied by the assessee is not owned by him; and • (d) the assessee has actually incurred expenditure on payment of rent (by whatever name called) in respect of the residential accommodation occupied by him. Meaning of Total Income for Computing Deduction Limits [ Section 134(5) ] • For the purposes of this section, • the expressions "10% of his total income" and • "25% of his total income" shall • mean 10% or 25%, ....

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....cifically granted to him which qualifies for exemption under section 10(13A) of the Act; • the individual files the declaration in Form No. 10BA (this declaration can be submitted electronically to the A.O. whenever he wants to examine it). • the employee does not own: i. any residential accommodation himself or by his spouse or minor child or where such Individual is a member of a HUF, by such family, at the place where he ordinarily resides or performs duties of his office or carries on his business or profession; or ii. at any other place, any residential accommodation being accommodation in the occupation of the Individual, the value of which is to be determined under Section 23....