I am retired and live off my pension. I am living in a rented flat for which I pay Rs 7,000 monthly rent. Can I avail tax deduction on rent?
Yes, a pensioner can claim deduction on rent paid for property under Section 80GG of the Income Tax Act
I am retired and live off my pension. I am living in a rented flat for which I pay Rs 7,000 monthly rent. Can I avail tax deduction on rent?
Vasudevan Nair, Trivandrum
Yes, a pensioner can claim deduction on rent paid for property under Section 80GG of the Income Tax Act on the basis of following – as per Section 4, definition of salary also includes pension. Moreover, the rent you are paying for the residence should not be owned by your spouse or children. This aspect is included to ensure that there is no scope for using the deduction in a manner to benefit unduly.