Hello I want to make Deduction under Section 80GG but i have following status: As self employed I pay Rs. 7600 per month rent in cash to Landlord But i don’t have any proof of this i mean rent receipts, or rent agreement nothing so is it still fine to claim this under 80GG? Landlord is 80 years old person not high educated, don’t have any knowledge of tax, he don’t file ITR and he will not give rent receipts nor he will sign on any receipt even if i give him from myself, don’t have rent agreement because i’m living and paying him rent from 5 years so first 3 years he did rent agreement after that he got health issues so no agreement from two years just living and paying rent. At most what he can do is if someone ask him face to face then he tells that i live on rent with him and pay him monthly etc otherwise nothing in written! So if i claim under 80GG with Form 10BA and in rear case stuck in scrutiny there will be any solution for this? i'm filling ITR first time so maybe no scrutiny but still never know. Thanks
Dear Sir,
If your return comes under scrutiny, then it will be a problem without any written proof. However, if you are paying the amount through bank, you can still argue.
Further, if you are filing return first time with income below 5 lacs, chances are very less that your return will be captured in scrutiny.
Please feel free to call/ revert in case of any doubts
Thanks and Regards
Abhishek Dugar
CA CS B.Com
You can not claim deduction u/s 80G unless you have following proof
- Rent Agreement & Rent Receipts / Rent Payment through Cheque
I think you should do some sort of documentation or pay him through cheque than only you will able to justifies your claim u/s 80GG
Yes you claim the deduction and make chq payment to landlord.
Chq can be valid payment proof.
And also have declaration 10 BA.
Yes you can claim as in online filing no proof are to be attached. If in future any one asks you can give them the declaration. For such small issues Scrutiny will generally not come
Hello sir ,
I think you need to first go through to section 80GG:-
Section 80GG allows the Individuals to a deduction in respect of house rent paid by him for his own residence. Such deduction is permissible subject to the following conditions :-
(a) the Individual has not been in receipt of any House Rent Allowance from his employer specifically granted to him which qualifies for exemption under section 10(13A) of the Act;
(b) the Individual files the declaration in Form No. 10BA.
(c) 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 Hindu Undivided Family, 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(2)(a) or Section 23(4)(a) as the case may be.
(d) He will be entitled to a deduction in respect of house rent paid by him in excess of 10% of his total income, subject to a ceiling of 25% thereof or Rs. 2,000/- per month (Rs. 5000/- Proposed wef F.Y. 2016-17), whichever is less. The total income for working out these percentages will be computed before making any deduction under section 80GG. In other word eligibility will be least amount of the following :-
1) Rent paid minus 10 percent the adjusted total income.
2) Rs 2,000 per month (Rs. 5000/- Proposed wef F.Y. 2016-17).
3) 25 percent of the adjusted total income./
conclusion:-
you May not claim all Rs.91200 (7600*12) U/S 80GG. First you have to calculate the eligible amount of deduction you can claim U/s 80GG .
Secondly, if your income is under 5-6 lakh, there are very rear chance that you receive an notice from Income tax department. Also income tax department usually don't ask for the documents.
For any clarification feel free to contact us at ca.skagarwal@gmail.com
Call at: 07503638500
Thanks Regards
CA SK Agarwal
7503638500
Hi
A registered rent agreement would be a strong proof to substantiate that you were paying rent. You will need all proofs to substantiate that you have been paying rent, which will have to be submitted at the time of assessment. Nowadays there are portals which assist you in registrating a rent agreement, sitting at home. Try using those websites.
Considering you don't have one currently, you could begin with transferring the rent to the landlord by way of cheque / bank transfer. If your case gets picked up for scrutiny, you could submit your old rent agreements, bank statements proving the withdrawal/ transfer, and an affidavit from the landlord that he has received the rent.
Regards
Keerthiga Padmanabhan
Hello Sir,
It is preferable to either into a rent agreement, get rent receipts as well as pay the rent amount in the form of cheque. I suggest you not to enter into cash transactions if you have an intention of claiming deduction u/s 80GG.
If you cannot get the above mentioned documentation done then do not claim deduction u/s 80GG.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP
