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CS Executive · Tax Laws and Practice · Deductions

Under section 134 of the Income-tax Act, 2025 (applicable from June 2027), which of the following assessees is NOT eligible for the deduction for rent paid for own residence?

The assessee who owns a house at the place where he ordinarily resides is not eligible. Section 134(4) denies the rent deduction when residential accommodation is owned by the assessee, spouse, minor child or HUF at that place, while furnished and unfurnished rented homes qualify.

  1. AAn individual who lives in a rented flat and owns no residential house at the place where he works
  2. BAn individual who pays rent for an unfurnished accommodation occupied as his own residence
  3. CAn individual who pays rent for a furnished accommodation occupied as his own residence
  4. DAn individual who owns a house at the place where he ordinarily resides and also pays rent for another house thereCorrect

Explanation

Section 134(4)(a)(i) denies the deduction where residential accommodation is owned by the assessee, spouse or minor child (or the HUF) at the place where he ordinarily resides or performs duties. Section 134(1) allows rent for furnished or unfurnished accommodation, so the other options are eligible.

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