Whether benefit of deduction u/s 80GG is not available for pension income which is taxable under u/s 15?

Question

I retired from Government service in April,2007. In April,2007 salary including house rent allowance for March and April,07 were received. House rent allowance is not received for the remaining months of 07-08FY along with the monthly pension. Is it possible to claim deduction u/s 80GG from the pension income credited to my bank a/c during 07-08 FY particularly when pension is taxable under the head salary?

Answer 1

pension is taxed under the head 'Salary Income'. You can claim for the rent actually paid by you, subject to other conditions specified in section 80GG. If you, or your spouse, or the HUF to which you belong, should not own a house. Also the rent paid should be in excess of 10% of your total income, for an accommodation occupied by you for the purpose of your own residence. You should also file a declaration to that effect in Form 10BA.