As per the Finance Budget 2016, the Income Tax Section 80GG has raised up to Rs. 60,000/- P.A. who have not get any House Rent Allowances from their Concerned.

Download Income Tax Salary Certificate Form 16 Part B for Financial Year 2015-16 & Assessment Year 2016-17 [ This Excel Utility Can prepare at a time 50 employees Form 16 Part B ] 

In order to provide relief to the individual tax payers, it is proposed to amend section 80GG so as to increase the maximum limit of deduction from existing Rs. 2000 per month to Rs. 5000 per month.

This section allows an individual a deduction in respect of house rent paid for his own residence. Such deduction is permissible, subject to the following conditions:

a) Who have not get any Allowances as House Rent Allowances from their Concerned & it is not allowed both deduction U/s 10(13A) and U/s 80GG both can not be claim at a time.

b) The individual files a declaration in Form 10BA.

c) The employee does not own  residence :

i. any residential accommodation himself or by his spouse or where such individual is a member of a HUF.

ii. Any residential accommodation in the occupation of the Individual, the value of which is to be determined u/s 23

d) Entitlement of deduction:

i. Allowed deduction in respect of rent paid in excess of 10% of total income;

ii. Subject to a ceiling limit of 25% of total income, or , Rs.2000/- per month whichever is less. This limit of Rs.2000/- is now proposed to be increased to Rs.5000/- per month from 1^st April, 2017 and shall accordingly apply in relation to assessment year 2017-18 and subsequent years.