in budget 2016 the finance minister has raised the maximum deduction available under section 80gg to rs 60000 per annnum from existing rs 24000 per annum this impacts those who are not salaried employees or do not receive hra as part of their salary as per current tax laws such people can claim deduction of rent paid from gross taxable income upto rs 24000 per annum this limit is now proposed to be been increased to rs 60000 per annum thus consultants or self employed people such as teachers who give coaching classes adhoc employees would be affected by this proposed change currently salaried individuals getting hra as part of salary and claiming deduction of rent paid from salary income under section 10 are not affected by this proposed change in tax law the deduction under section 80gg is available to an assessee who does not receive any hra component as a part of his salary deduction is available in respect of the rent paid by assessee for his own accommodation in a particular year a declaration in form 10ba is to be submitted by the assessee in order to avail this deduction currently the amount of deduction allowed is the least of the following rent paid over 10 of salary basic da or 25 of total income before subtracting any deductions or rs 2000 pm a salaried employee who does not receive hra as a part of his salary or an assessee who do not have any income from salaries makes use of deduction us 80gg on account of payment of rent the current provision provides a maximum deduction of upto rs 2000 pm which is often not enough to cover even 50 of the actual rent paid in order to make the computation just and fair and taking a realistic approach the fm has proposed to increase the maximum ceiling on this deduction