Latest Amended U/s 80GG have raised the limit from 2000/- to Rs. 5000/- as per Finance Bill 2016-17
- Only individual and HUF are allowed exemption under this section.
- Only rent paid for purpose of residence of assessee himself is considered under this section.
- If an individual is a salaried employee and receives House Rent Allowance(HRA) at any time during the previous year, he is not eligible for deduction.
- The individual, his spouse or minor child (including step or adopted child) or HUF of which he is a member must not own a residential accommodation at a place where he ordinarily resides or performs duties of his office or employment or carries on his business or profession.
- Also if the assessee (only assessee not any other person mentioned above) owns a residential accommodation at any other place but claims it as a self-occupied property under head House Property, the exemption is not available under this section.
- Declaration of form 10BA is required to be filed.
Calculation of deduction:-
The amount deductible is least of the following:-