| What is the maximum deduction permitted under section 80GG on house rent? Whether any house rent receipt has to be furnished with Form ITR-1? |
B.D. Prasad, Calcutta |
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| Under section 80GG, house rent deduction can be claimed if there is no house rent allowance in total income. The relief is available where the assessee or his spouse or minor child or family of which the individual is a member does not own any residential accommodation in the place where he resides. In such a case, the assessee can claim a deduction towards the rent paid in excess of 10 per cent of his/her total income (before the deduction). The maximum deduction, however, cannot exceed Rs 2,000 a month or 25 per cent of the assessee’s total income, whichever is less. If there is an HRA in total income, please refer to rule section 10(13A) read with rule 2A which exempts HRA for the rent paid in excess of 10 per cent of salary, subject to a ceiling prescribed in the rule. |
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| Seniority benefits |
| I am a senior citizen. My annual income during the current fiscal will be around Rs 1.90 lakh. What will be my income tax liability? Shall I have to file income tax returns? |
Mrinal Kanti Mitra, Hind Motor |
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| Under income tax rules, a senior citizen is a person who has attained 65 years of age. People who are above 65 years and have an annual income less than or equal to Rs 1.95 lakh in 2007-08, won’t have to pay any income tax. Filing of income tax returns for assessees having less than the threshold income is voluntary. |
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| Tax challan |
| I am 62 years old. My total income in 2007-08 will exceed Rs 1.10 lakh and I may have to pay some income tax. Which challan, ITNS 280 or ITNS281, should I use to pay the tax at a nationalised bank? If I invest the income in excess of Rs 1.10 lakh in a tax saving fixed deposit with a bank, do I have to file the income tax return in form ITR-1? |
Soumitra Sen, Ashokenagar |
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| To pay income tax, you should use challan number ITNS 280. Form ITR 1 has to be used by assessees who have income only from salary, pension (including family pension) and interest. People having income from any other sources will have to use Form ITR 2. |
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| If you have any queries about investing or taxes or a high-cost purchase you are planning, mail to: btgraph@abpmail.com, or write to: Business Telegraph, 6 Prafulla Sarkar Street, Calcutta 700 001. |
