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Live On Rent: Tax Deduction Can Be Claimed Only Under These Situations


There can be a case even after owning your own house you may be living in a rented accommodation for the simple reason being that the house you own is currently under construction. And if for the rented accommodation you want to claim the rent amount as deduction allowed u/s 80GG you need to satisfy some of the specified conditions.

Live On Rent: Tax Deduction Can Be Claimed Only Under These Situations

Following are some of these conditions:

1. In order to claim the deduction, you or your spouse or your minor child or if you happen to have a HUF of which you are a co-partner then none of you should be owning the house in the same city where you live in currently.

2. Also, for making the claim if you own a house in any other city which is not let out you become ineligible in respect of making the allowed tax deduction.

3. However, if the case is that your property in some other city is under-construction then you are eligible to make the claim until the construction work gets completed. Further on completion the tenet to make the available deduction would depend on the fact as to whether you decide to rent the property or not.

4. In respect of the amount of rent against which the claim can be made, Income tax puts forth that if the amount of rent is less than 1% of your total taxable income or maximum of Rs. 5000 on a monthly basis or 25% of your taxable income then claim cannot be made.

Read more about: rent tax deduction section 80gg
Story first published: Wednesday, August 16, 2017, 12:52 [IST]
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