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Chapter No. 15 - Deduction u/s 80GG
. In such a case, the deduction allowed would be least of the following:-
1.Rs. 2000 per month i.e. Rs. 24000 per annum
2.Rent paid i.e. 1,50,000 minus 10% of total income i.e. 30,000 = 1,20,000
3.25% of total income i.e. Rs. 75,000
The least of the above would be allowed as a deduction and therefore ₹ 24,000 would be allowed as a deduction under Section 80GG.
Deduction under Section 80GG determined as the least of three statutory measures; example illustrates rent-based cap applies. Deduction under Section 80GG is the least of: (1) Rs. 2,000 per month (Rs. 24,000 per annum); (2) rent paid less 10% of total income; and (3) 25% of total income. In the supplied example with total income of Rs. 3,00,000 and rent paid Rs. 1,50,000, the three measures are Rs. 24,000; Rs. 1,20,000; and Rs. 75,000 respectively, so Rs. 24,000 is the allowable deduction under the prescribed formula. of Press 'Enter' after typing page number.
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