Section 80GG: Claim Rent Deduction When You Get No HRA
Last verified: June 2026, against the Income Tax Act provisions cited below. Figures apply to FY 2025-26 (AY 2026-27). This is general information, not personal tax advice.
Most salaried people cut their tax on rent through HRA. But what if your salary has no HRA component, or you are self-employed? Section 80GG is the answer — it lets you deduct rent paid even without HRA. Here is how much you can claim and the conditions attached.
How much you can claim
The deduction is the least of these three:
- ₹5,000 per month (i.e. ₹60,000 a year);
- 25% of your total income (before this deduction);
- Actual rent paid minus 10% of total income.
In practice the ₹60,000 annual cap is what limits most claimants.
Who can claim it
Section 80GG is for individuals — salaried (with no HRA) or self-employed — who pay rent for their accommodation. You qualify only if:
- You do not receive HRA at any time during the year;
- You, your spouse, your minor child or your HUF do not own a residential house at the place where you live or work;
- You do not own a house elsewhere that you are claiming as self-occupied.
Form 10BA is required
You must file a declaration in Form 10BA on the e-filing portal confirming you meet the conditions and stating the rent paid, landlord details and tenancy period. Without it, the deduction can be denied.
Old regime only
Like most Chapter VI-A deductions, 80GG is available only under the old tax regime. If you have an HRA component in your salary, you should instead use the HRA exemption — see HRA exemption and our HRA calculator.
Worked example
Total income ₹8,00,000; rent paid ₹1,80,000 a year. The three limits are: ₹60,000; 25% of income = ₹2,00,000; rent − 10% of income = ₹1,80,000 − ₹80,000 = ₹1,00,000. The least is ₹60,000, so you can deduct ₹60,000.
Common mistakes
- Claiming 80GG while also receiving HRA from your employer, even partly — not allowed.
- Owning a house in the city where you work (or where you, your spouse or minor child live) — this disqualifies you.
- Skipping Form 10BA, the declaration that you meet the conditions. File it on the income tax portal before filing your ITR.
- Paying rent in cash without receipts; keep a rent agreement and bank transfer records.
Who benefits most
Self-employed people, freelancers and salaried employees whose pay structure has no HRA component. For a self-employed person in the 30% slab paying ₹25,000 a month rent, the maximum ₹60,000 deduction saves about ₹18,700 a year including cess — but only if the old regime suits them overall. Compare with the old vs new regime guide.
What changes under the Income-tax Act, 2025
The Income-tax Act, 2025 replaced the 1961 Act from 1 April 2026. Returns for FY 2025-26 (AY 2026-27) are still filed under the old Act, old section numbers and old forms. From tax year 2026-27 onwards, section numbers and many form numbers change — for example, Form 16 becomes Form 130, Forms 15G/15H merge into Form 121, Form 26QB becomes part of Form 141 and Form 10E becomes Form 39. The underlying rules discussed here were largely carried over; only the references change.
FAQs
Can I claim 80GG for rent paid to my parents?
Yes, if you genuinely pay rent and your parents own the house; they must show the rent as income. See rent to parents for the paperwork.
Can I claim 80GG if I get HRA?
No. 80GG is only for those who do not receive HRA at any point in the year.
What is the maximum deduction?
Effectively ₹60,000 a year (₹5,000 a month), subject to the income-based limits.
Do I need to file any form?
Yes — Form 10BA, a declaration of rent paid and that you meet the conditions.
Is 80GG available under the new regime?
No. It is available only under the old tax regime.
