Objective: Provides tax relief to individuals paying rent without receiving House Rent Allowance (HRA).
Eligibility: Available to self-employed or salaried individuals not availing HRA.
Ownership Conditions: Taxpayer, spouse, or HUF should not own residential property where they work or reside.
Deduction Limit: Lesser of actual rent paid minus 10% of total income, 25% of total income, or ₹5,000 per month (₹60,000 annually).
Documentation: Requires filing Form 10BA declaring no ownership of residential property and PAN details of landlord if rent exceeds ₹1,00,000 annually.
Exclusions: Inapplicable if taxpayer owns residential property at their workplace or elsewhere.
ITR Filing: Claimed while filing Income Tax Returns using appropriate ITR form, alongside necessary supporting documents like Form 10BA and rent receipts.