Deduction in respect of rents paid
53[Deduction in respect of rents paid.
80GG. 54In computing the total income of an assessee, not being an assessee having any income falling within clause (13A) of section 10, there shall be deducted any expenditure incurred by him in excess of ten per cent of his total income towards payment of rent (by whatever name called) in respect of any furnished or unfurnished accommodation occupied by him for the purposes of his own residence, 55[to the extent to which such excess expenditure does not exceed one thousand rupees per month or twenty-five per cent of his total income for the year, whichever is less], and subject to such other conditions or limitations as may be prescribed, having regard to the area or place in which such accommodation is situated and other relevant considerations:
56[Provided that nothing in this section shall apply to an assessee in any case where any residential accommodation is,—
(i) owned by the assessee or by his spouse or minor child or, where such assessee 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 employment or carries on his business or profession ; or
(ii) owned by the assessee at any other place, being accommodation in the occupation of the assessee, the value of which is to be determined 57[under sub-clause (i) of clause (a) or, as the case may be, clause (b), or sub-section (2)] of section 23.]
Explanation : In this section, the expressions "ten per cent of his total income" and 58["twenty-five per cent] of his total income" shall mean ten per cent or 59[twenty-five per cent], as the case may be, of the assessee's total income before allowing deduction for any expenditure under this section.]
53. Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1976.
54. See rule 1 IB.
55. Substituted for "to the extent to which such excess expenditure does not exceed *four hundred rupees per month or fifteen per cent of his total income for the year, whichever is less" by the Finance Act, 1986, w.e.f. 1-4-1987. *"Four" was substituted for "three" by the Finance Act, 1982, w.e.f. 1-4-1983.
56. Substituted for the following by the Finance Act, 1983, w.e.f. 1-4-1984 :
"Provided that nothing in this section shall apply to an assessee in any case where any residential accommodation is owned by him or by his spouse or minor child, or, where such assessee is a member of a Hindu undivided family, by such family."
57. Substituted for "under clause (i) or, as the case may be, clause (ii), of sub-section (2)" by the Finance Act, 1986, w.e.f. 1-4-1987.
58. Substituted for "fifteen per cent" by the Finance Act, 1986, w.e.f. 1-4-1987.
59. Inserted by the Finance Act, 1979, w.e.f. 1-4-1980 and shall be omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.
[AS AMENDED BY THE FINANCE ACT, 1988]