Quiz for the week (08 Jan 2024):
Balaji (age 56) has furnished the following details
for the financial year 2022-23:
|
S.No
|
Particulars
|
Rs.
|
|
(i)
|
Income from business-Textile
|
4,40,000
|
|
(ii)
|
Long-term capital gain (STT paid)
|
1,30,000
|
|
(iii)
|
Income from futures & options
|
3,00,000
|
|
(iv)
|
Bank FD interest
|
60,000
|
|
(v)
|
PPF contribution
|
1,50,000
|
|
(vi)
|
Rent paid for residence through RTGS. He does not
own any residential building in India
|
1,20,000
|
Decide how much of the amount paid towards rent is
eligible for deduction for the assessment year 2023-24?
Best Answer :
It is apparent that the assessee Balaji is not having
income by way of salary and does not own a house property. His total income has
to be computed first before determining the quantum of deduction under section
80GG.
|
Computation
of total income for the purpose of section 80GG deduction
|
|
Income from business-Textile
|
4,40,000
|
|
Income from futures & options
|
3,00,000
|
|
Long-term capital gain (STT paid)- not to be
considered, refer sec.112A (5)
|
|
|
Bank FD interest
|
60,000
|
|
|
8,00,000
|
|
Less: PPF contribution
|
1,50,000
|
|
Total income for the purpose of section 80GG
deduction.
|
6,50,000
|
|
|
|
|
Deduction under section 80GG- least of the
following:
|
|
|
(A)
Monetary Limit Rs 5,000 per
month = Rs.60,000
|
|
(B)
Excess of rent paid over 10% of
total income. Rs.1,20,000 less 10% of total income ( Rs.1,20,000-
Rs.65,000)= Rs.55,000
|
|
(C)
25% of total income being Rs.
1,62,500(25% of Rs.6,50,000.
|
|
Assessee
is eligible for deduction of Rs.55,000 under section 80GG.
|
Uppuganti Sai Charan Rao
Karnataka
|