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    Section 80GG rent deduction (no HRA) (80GG)

    Section 80GG is the rent deduction for people who pay rent but receive no House Rent Allowance, typically the self-employed, freelancers and salaried people without HRA. The deduction is the least of three figures: Rs 5,000 a month (Rs 60,000 a year), 25% of adjusted total income, or actual rent minus 10% of adjusted total income. In practice the Rs 60,000 ceiling almost always binds, so it is a small deduction. You must not own a residential house where you live or work, must actually pay rent, and must file Form 10BA. It is old regime only.

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    What this relief is, in plain English

    If you rent your home but get no HRA, 80GG is your version of the salaried person's rent relief. The catch is how small it is: the deduction is the least of Rs 60,000 a year, a quarter of your income, or your rent above 10% of income, and the Rs 60,000 cap almost always wins, so it rarely amounts to much. You also have to genuinely not own a home at the place you live or work (you and your spouse, minor child or HUF), and you file a simple self-declaration, Form 10BA. Like the other deductions, it only works on the old regime, so factor it into the regime choice rather than assuming it tips the balance.

    How it works

    The least-of-three formula

    The deduction is the lowest of: Rs 5,000 a month (Rs 60,000 a year); 25% of your adjusted total income; or your actual rent paid minus 10% of adjusted total income. Adjusted total income is your gross total income less long-term gains, certain short-term gains and the other Chapter VI-A deductions. Because the Rs 60,000 figure is usually the smallest, it tends to be the binding cap.

    The ownership condition

    You cannot claim 80GG if you, your spouse, your minor child or your HUF owns a residential house at the place where you reside or work, nor if you claim the self-occupied benefit on a house you own elsewhere. The relief is genuinely for renters who do not own where they live, which is why a homeowner who chooses to rent in the same city cannot use it.

    Form 10BA and who claims it

    You file Form 10BA, a self-declaration of the rent paid and the landlord's details, to claim 80GG. It is available to individuals who receive no HRA at any point in the year, salaried people without an HRA component, the self-employed, freelancers and pensioners who rent. If you do get HRA, you use the HRA exemption instead, not 80GG.

    Who qualifies

    Interactions with other reliefs

    HRA exemption

    80GG is the alternative for those with no HRA; if you receive HRA you use the HRA exemption instead

    New regime

    80GG is old-regime only; weigh against the Rs 12 lakh tax-free band

    194-IB rent TDS

    A renter paying over Rs 50,000 a month must deduct 2% TDS under 194-IB, separate from claiming 80GG

    Common mistakes + audit triggers

    Worked example

    Farhan, Pune - self-employed consultant who rents and gets no HRA (2026-27)

    Farhan has adjusted total income of Rs 12 lakh and pays Rs 1,80,000 a year in rent. He owns no house in Pune. He is on the old regime.

    Calculation: He computes the least of three: Rs 60,000 (the Rs 5,000/month cap); 25% of Rs 12 lakh = Rs 3,00,000; and actual rent Rs 1,80,000 minus 10% of income (Rs 1,20,000) = Rs 60,000. The least is Rs 60,000, so that is his 80GG deduction. As often happens, the Rs 60,000 ceiling binds, so despite Rs 1.8 lakh of rent he deducts only Rs 60,000. He files Form 10BA, and because 80GG is old regime only, he checks the old regime still suits him overall.

    Statute reference: Income-tax Act 2025 (Chapter VIII) (Income-tax Act 1961 s.80GG) s.80GG; least-of-three formula; Form 10BA; no-owned-house condition. Source / notes: Year-of-Act note: 80GG is old-regime only; not available under the new regime.

    Frequently asked questions

    How much can I claim under 80GG?+
    The least of three figures: Rs 5,000 a month (Rs 60,000 a year), 25% of your adjusted total income, or your actual rent minus 10% of that income. In practice the Rs 60,000 annual cap almost always binds, so 80GG is a modest deduction even if your rent is much higher. It is old regime only.
    Who can claim Section 80GG?+
    An individual who pays rent for their home and receives no House Rent Allowance at any point in the year, typically the self-employed, freelancers, pensioners and salaried people without an HRA component. If you receive HRA, you claim the HRA exemption instead. You file Form 10BA to claim 80GG.
    Can I claim 80GG if I own a house?+
    Not if you, your spouse, your minor child or your HUF owns a residential house at the place where you live or work, and not if you claim the self-occupied benefit on a house you own elsewhere. The deduction is specifically for renters who do not own where they reside, so a homeowner renting in the same city cannot use it.
    Is 80GG available under the new regime?+
    No. Like most Chapter VI-A deductions, 80GG is old-regime only. Given that it is also capped at Rs 60,000, it rarely tips the regime decision on its own, but include it with your other old-regime deductions when comparing against the new regime's lower slabs and Rs 12 lakh tax-free band.

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