House rent paid by Senior citizen earning Pension Income

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  1. SRINIVAS KARUMANCHI

    SRINIVAS KARUMANCHI New Member

    Dear Sir/Madam
    My father aged 75 years was retired and staying in rented house paying annually Rs 60,000 as rent. He is drawing pension of about Rs 38,000. Is the rent paid by him eligible for deduction from income? He does not draw any HRA and he does not have any own house and no income from house property
     
  2. rudrabose

    rudrabose Active Member

    Yes, your father can claim income tax deduction for rent paid in the above case as mentioned by you.

    The deduction allowed would be least of the following:-
    1. Rs. 2,000 per month i.e. Rs. 24,000 per annum
    2. Rent Paid (60,000) - 10% of Salary (38,000) = 56,200
    3. 25% of total income = 9,500
    There the deduction he can claim under Section 80GG for payment of Rent is Rs 9,500 as the least of the above figures would be allowed to be claimed as a deduction.

    PS: The above computation has been done taking into account that he does not have any other income from any source.

    For more on Section 80GG, kindly refer: http://www.charteredclub.com/section-80gg/
     
  3. balakrishnan

    balakrishnan New Member

    rudrabose is right
     
  4. Rajesh Goyal

    Rajesh Goyal New Member

    In case pension is 38000/- pm the deduction will be 20,000/- under section 80GG. if the pension specified 38000/- is per annum then the deduction will be 9500/-
     
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