Section 80GG of Income Tax Act & Deductions in Respect of Rent Paid, Conditions & Eligibility

Section 80GG of the Income Tax Act provides tax relief to individuals who pay rent but do not receive House Rent Allowance (HRA). Available only under the old tax regime, it benefits both salaried employees without HRA and self-employed taxpayers. To claim this deduction, certain conditions apply, including filing Form 10BA and adhering to ownership restrictions.

Key Highlights 

• Available to both salaried (without HRA) and self-employed taxpayers.
• Form 10BA is required to be filed within due date for claiming this deduction.
• Deduction under section 80GG is available only under the old regime.

What is Section 80GG Deduction?

Section 80GG of the Income Tax Act provides a deduction to individuals who pay rent for residential accommodation but do not receive House Rent Allowance (HRA) from their employer. The provision applies to both salaried individuals without HRA and self-employed professionals. To claim this deduction, the individual must actually pay rent for a furnished or unfurnished house that is occupied as their own residence.

Eligibility for Claiming Deduction Under Section 80GG

A taxpayer must fulfil the following conditions to claim a deduction under Section 80GG:

• You should file under the old regime.
• You have not received HRA from an employer at any time during the year or claimed HRA exemption . 
• You will be required to file Form 10BA within the due date.

Maximum Deduction Limit under Section 80GG 

The lowest of these will be considered as the deduction under this section- 

• Rs.5,000 per month or 60,000 per year
• 25% of the total income before allowing deduction for expenditure under this section
• Actual rent less 10% of income before allowing deduction for expenditure under this section

Form 10BA Requirement

• A declaration in Form 10BA is mandatory to confirm compliance with the conditions for claiming a deduction under Section 80GG. 
• The form must be filed online and submitted on or before the due date of filing your Income Tax Return (ITR) (i,e, 15th September 2025 For FY 2024-25).
• Following are the details to be filled in 10BA:
  • Name and PAN of assessee 
  • Full address of assessee
  • Tenure and rent amount 
  • Rent payment mode
  • Name and address of the landlord
  • PAN of the landlord if rental is above INR 1 lakh
  • A declaration that no other house property is owned by the assessee himself or in the name of spouse/minor child or by the HUF of which he is a member.

Form 10BA Download