Section 80GG of Income Tax Act: All you need to know

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Section 80GG

Understanding Section 80GG

Section 80GG of the Income Tax Act provides tax deductions for individuals paying rent but not receiving House Rent Allowance (HRA) from their employer. This deduction helps taxpayers reduce their taxable income, making housing more affordable.

Eligibility Criteria for 80GG Deductions

Who Can Claim Tax Deductions under Section 80GG?  

To claim tax deductions under Section 80GG, an individual must meet the following criteria:

- They should be salaried or self-employed.

- They must not receive HRA as part of their salary.

- They, their spouse, or minor child should not own residential property at the place of employment.

- They should not have any self-occupied residential property in any other location.

Calculating Deductions Under Section 80GG

How are Deductions Calculated? 

The deduction under Section 80GG is the least of the following amounts:

- ₹5,000 per month.

- 25% of the total income (excluding capital gains, short-term capital gains, and deductions under Sections 80C to 80U).

- Actual rent paid minus 10% of total income.

Filing Form 10BA for 80GG Deductions

How to File Form 10BA?  

To claim deductions under Section 80GG, taxpayers need to file Form 10BA. This form is a declaration that the taxpayer, spouse, or minor child does not own any residential property at the place of employment or elsewhere.

Accessing Form 10BA

Where can you find Form 10BA?  

Form 10BA can be accessed and filed online through the official Income Tax Department's e-filing portal. The form requires basic details such as the taxpayer’s name, address, and rental payment information.

Tax Deductions for Property Owners under Section 80GG

How can Property Owners Benefit? 

Property owners who meet the eligibility criteria can claim deductions under Section 80GG. However, they must ensure they do not own residential property at their place of work or in any other location, and they must file Form 10BA.

Required Documentation for Section 80GG Deductions

Documents Needed for Claiming Deductions 

To claim deductions under Section 80GG, the following documents are required:

- A filled Form 10BA.

- Rent receipts or rental agreement(s).

- Details of the landlord such as name and address.

- PAN of the landlord if rent exceeds ₹1,00,000 per year.


Section 80GG provides a valuable tax benefit for individuals paying rent without receiving HRA. By understanding the eligibility criteria, calculation methods, and required documentation, taxpayers can effectively reduce their taxable income. Ensure to file the necessary forms and maintain proper records to take full advantage of this deduction.

  • Am I allowed to claim deduction under Section 80GG if I am not living in a rented residential property?

  • I split the rent with my roommate but the rental agreement is in his name, how can I claim deductions in this case?

  • What is adjusted annual income?

  • Can non-resident Indians also claim tax deductions under Section 80GG?

  • How Section 80GG is different from Section 10 (13A) of the Indian Tax Act?