Compute Income Tax deduction for house rent paid by self-employed professionals or employees who do not receive House Rent Allowance (HRA).
Gross Total Income less LTCG, STCG u/s 111A, and all Chapter VI-A deductions except 80GG.
Deducted directly from gross income under Old Tax Regime.
Section 80GG is a special relief provision for individuals (both self-employed and salaried employees) who pay house rent for furnished or unfurnished residential accommodation but do not receive House Rent Allowance (HRA) from an employer at any time during the financial year.
The deduction is the LEAST of the following three amounts:
1. ₹5,000 per month (Maximum ₹60,000 per year).
2. 25% of Adjusted Total Income for the year.
3. Actual Rent Paid minus 10% of Adjusted Total Income.
You cannot claim Section 80GG if: (1) You receive HRA from your employer, (2) You, your spouse, minor child, or HUF owns residential accommodation at the place where you reside or work, or (3) You claim self-occupied property benefit on a house in any other location.
| Feature | HRA u/s 10(13A) | Rent Deduction u/s 80GG |
|---|---|---|
| Eligible Taxpayers | Salaried employees receiving HRA | Self-employed or salaried without HRA |
| Maximum Annual Cap | No statutory cap (based on salary/rent) | Max ₹60,000 per year (₹5k/month) |
| Mandatory Portal Form | Employer Form 12BB | Form 10BA e-filed on IT Portal |
Form 10BA is a statutory electronic declaration confirming that you do not own any residential house at your work city and have not received HRA during the year. It must be filed before submitting ITR.
Yes. If your salary package has no HRA component and you pay rent for your residential accommodation, you are fully entitled to claim Section 80GG.
Yes. If annual rent paid exceeds ₹1,00,000, landlord's PAN number and full postal address must be declared in Form 10BA and ITR.