Section 80GG Deduction-Get Tax Benefit on rent paid if not getting HRA !!!

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• I am a government employee who joined last year. For the first 5 months of this financial year, I was under training and was not getting any HRA component in my salary. I was staying in rented accommodation. In the last 7 months of this financial year, I got permanent and I started getting the HRA component. I am still staying in the same rented accommodation. When I was filling the ITR, it stated that both the HRA exception and 80GG cannot be claimed at the same time. But, I believe I am eligible for 80GG for the first three months and an HRA exception for the next 9 months. Please advise what to do in this scenario.

  • Dear Vivek,
    Sadly you are not eligible as during the same financial year, you have received the HRA also.

• I am a government employee who joined last year. For the first three months of this financial year, I was under training and was not getting any HRA component in my salary. I was staying in rented accommodation. In the last 9 months of this financial year, I got permanent and I started getting the HRA component. I am still staying in the same rented accommodation. When I was filling the ITR, it stated that both the HRA exception and 80GG cannot be claimed at the same time. But, I believe I am eligible for 80GG for the first three months and an HRA exception for the next 9 months. Please advise what to do in this scenario.

  • Dear UK,
    I have already replied to your email.

• Hello Sir,

  If I have resigned from my old employer and withdrawn my EPF amount after 3 months of resignation. And also when I joined my new employer I did not taken the EPF as option in my CTC because my basic salary was more than 15,000 INR.

  But now my current employer is forcing us to have EPF account or they are asking to sign an letter if EPF department ask for penalty then we have to pay or they will deduct the money from our CTC. Can they do this?

  • Dear Ketan,
    Your employer is misguiding you. If your basic salary is more than Rs.15,000 at the time of joining, then you have all rights to stay away from EPF. There is no such concept of PENALTY.

• Sir, I was employed for 6 months and got HRA & I was NOT employed for six months but paid rent for full year. Can I claim tax benefit under both Sections ?

  • Dear Dayanand,
    Yes.

• Hello Sir,

  is someone has retired and withdrew his PF Amount then after some years again joined as an employee, Now is he eligible for deduction at the time of withdrawl of his PF Amount

  • Dear Ayush,
    Deduction on what?

• dear sir
  you are calculating total income in wrong way, this is not so given in section 80gg. It is calculated as Total income before allowing all deductions except the one provided under section 80GG itself.
  correct me if i am wrong sir
  Thanks

  • Dear Rahul,
    The same is mentioned in the above post. Let me know if you have a different view. I am ready to correct it.

• My total income after all deduction is around 500000 and not getting hra and paid rent 48000 ...now sir your calculation showing -2000....its total confusion..plzz help and suggest
  Thanks and regards

  • Lalit- If you are getting HRA, then you are not eligible to claim deduction under above said Section. Please refer above post properly.

    • Yes sir...I am not getting HRA and want to get benifits of this section.....but calculation is showing -2000..?

      • Lalit- Please cross check above post.

        • Sir in ur mr. X example....4 lac income...if rent paid by Mr x is 30000 then ...how much he can get benifit under 80gg....plz suggest

        • Lalit- Refer the condition

• Sir,
  I got HRA in my salary for 3 months n then after increment HRA is no more part of my salary. Is it possible to claim both i. e. HRA for first 3 months and then deduction under section 80gg for rest 9 months.

  • Vishal-Yes, you have to do that way.

    • Sir,is this 80gg deduction claimed by us while filing itr or employer can show this deduction in form 16?
      One more question,mine is same case.I will have to claim 80gg deduction for 9 months and hra exemption for 3 months.While calculating 80gg deduction,how is my adjustable total income calculated.I have tax saving fd of 150,000.?Do i have to substract this 150000 from my 9 months sallary for which i am claiming 80gg?

      • Sagar-You have to show this deduction to your employer or you can do this while filing IT return on your own. Regarding calculation, you have to deduct this from your total income to arrive at net taxable income. If you have confusion, then contact any tax expert of your area.

• Thanks for the article.
  Just need another opinion on my calculation based on the facts presented in article.

  Background:
  The company I am about to join doesn't give HRA (or any other component. Just has basic and residual pay).
  My gross salary without tax deduction would be 18.74 LPA. This doesn't include a variable component which may increase the number by 1 LPA. After 80C deductions, the income would be around 17 LPA.

  I live in Bangalore and paying rent of 9K ( 1 BHK, Bachelor...:) ) per month i.e. 108K per year.

  I believe the " Rent paid less 10%" would mean 108k - 10% of 17L = 108k - 170k.

  That means I am not eligible to any deductions under 80GG? Am I calculating it correct?

  • Nick-Whether this TOTAL INCOME is arrived at based on the meaning of TOTAL INCOME of IT Sec.5?

• Sir,
  I am living rented flat in pune. My company does not provide HRA to me.
  I am doing NEFT of Rs . 12500 each month to my landlord.
  landlord did not given his PAN and also rent receipt is not given to me.
  Can i claim HRA in ITR for current FY based on NEFT transaction each month in same account.

  • Abhishek-Take the printout of the same. Take the certification of the same by bank and CA and provide it as proof to your employer.