Deduction under section 13A and 80C

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  1. ZED

    ZED Well-Known Member

    Ask them to go through the following extracts from the Income Tax Act ,and then ask why they are not able to give deduction.


    80C. (1) In computing the total income of an assessee, being an individual or a Hindu undivided family, there shall be deducted, in accordance with and subject to the provisions of this section, the whole of the amount paid or deposited in the previous year, being the aggregate of the sums referred to in sub-section (2), as does not exceed one hundred and fifty thousand rupees

    (2) The sums referred to in sub-section (1) shall be any sums paid or deposited in the previous year by the assessee—

    (xviii) for the purposes of purchase or construction of a residential house property the income from which is chargeable to tax under the head "Income from house property" (or which would, if it had not been used for the assessee's own residence, have been chargeable to tax under that head), where such payments are made towards or by way of—

    (a) any instalment or part payment of the amount due under any self-financing or other scheme of any development authority, housing board or other authority engaged in the construction and sale of house property on ownership basis; or

    (b) any instalment or part payment of the amount due to any company or co-operative society of which the assessee is a shareholder or member towards the cost of the house property allotted to him; or

    (c) repayment of the amount borrowed by the assessee from

    (1) the Central Government or any State Government, or

    (2) any bank, including a co-operative bank, or

    (3) the Life Insurance Corporation, or

    (4) the National Housing Bank, or

    (5) any public company formed and registered in India with the main object of carrying on the business of providing long-term finance for construction or purchase of houses in India for residential purposes which is eligible for deduction under clause (viii) of sub-section (1) of section 36, or

    (6) any company in which the public are substantially interested or any co-operative society, where such company or co-operative society is engaged in the business of financing the construction of houses, or

    (7) the assessee's employer where such employer is an authority or a board or a corporation or any other body established or constituted under a Central or State Act, or

    (8) the assessee's employer where such employer is a public company or a public sector company or a university established by law or a college affiliated to such university or a local authority or a co-operative society;









    S.10(13A) any special allowance specifically granted to an assessee by his employer to meet expenditure actually incurred on payment of rent (by whatever name called) in respect of residential accommodation occupied by the assessee, to such extent as may be prescribed51 having regard to the area or place in which such accommodation is situate and other relevant considerations.

    Explanation.—For the removal of doubts, it is hereby declared that nothing contained in this clause shall apply in a case where—

    (a) the residential accommodation occupied by the assessee is owned by him ; or

    (b) the assessee has not actually incurred expenditure on payment of rent (by whatever name called) in respect of the residential accommodation occupied by him ;
     
  2. LAKSHMI PRABHU

    LAKSHMI PRABHU New Member

    So you say I can get both HRA exemption and Housing loan dedcution even though I have property and pay rent in same city (Bangalore).
     
  3. ZED

    ZED Well-Known Member

    Yes, had this been a case of 80GG , then deduction might not have been available. But, yours is a case of S.10(13A).
     
  4. LAKSHMI PRABHU

    LAKSHMI PRABHU New Member

    Same city does not matter right? My employer says that as reason that's why reconfirming
     
  5. ZED

    ZED Well-Known Member

    Yup, kindly see the explanation as cited in previous post. It clearly mentions that in which cases exemption shall not be available.
     
  6. LAKSHMI PRABHU

    LAKSHMI PRABHU New Member

    Thank you so much.
     
    ZED likes this.
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