Every rupee of eligible deduction reduces the income on which you pay tax. Section 80GG of the Income-tax Act, 1961 is one such provision, and using it correctly can meaningfully lower your tax bill.
This guide explains Section 80GG in plain language — the deduction limit, who can claim it, what is covered, the documents to keep, and the exact steps to claim it in your ITR.
What is 80GG?
Section 80GG lets self-employed people and salaried employees who do not receive House Rent Allowance (HRA) claim a deduction for rent paid.
How much can you claim?
Least of: ₹5,000 per month; 25% of total income; or actual rent paid minus 10% of total income.
Who is eligible
- Individuals not receiving HRA at any time in the year.
- You, your spouse or minor child must not own a house at the place of work.
- Form 10BA must be filed. Available under the old regime.
What is covered
- Rent paid for residential accommodation.
Documents and proof to keep
- Rent receipts; Form 10BA declaration.
Retain these documents even though they are not attached to the return — the tax department can ask for them during processing or assessment.
Applying the formula
Total income ₹6,00,000, rent ₹1,20,000/year. Options: ₹60,000 (₹5,000×12); ₹1,50,000 (25%); ₹60,000 (rent − 10% of income). The least, ₹60,000, is deductible.
How to claim it in your ITR
- Gather proof. Collect the certificates, receipts or statements listed above for the financial year.
- Choose the right regime. Opt for the old regime in your return, otherwise the deduction will not apply.
- Enter the amount. Report the eligible amount against Section 80GG in the deductions schedule of your ITR on the income-tax e-filing portal.
- Verify and file. Cross-check against Form 26AS / AIS, then submit and e-verify the return within the prescribed time.
Frequently asked questions
Can salaried employees claim 80GG?
Yes, but only if they do not receive HRA for any part of the year.