Income-tax deductions | House rent
Section 80GG of the Income-tax Act, 1961: Rent Deduction, Conditions and Calculation
Section 80GG provides a deduction for qualifying rent paid for a taxpayer's own residence where the taxpayer does not receive house rent allowance (HRA) eligible for exemption under Section 10(13A). The deduction is subject to a three-part calculation and restrictions on ownership of residential property.
What is Section 80GG?
Section 80GG is a Chapter VI-A deduction for qualifying rent paid for furnished or unfurnished residential accommodation occupied by the taxpayer. It can benefit self-employed persons, professionals, pensioners and salaried individuals who do not receive qualifying HRA. It is not an exemption of rent received by a landlord and it does not cover rent for a business premises.
Who can claim the rent deduction?
- The claimant is an individual paying rent for accommodation occupied as their own residence.
- The individual does not have income falling within the HRA exemption provision, Section 10(13A), for the relevant period.
- Neither the taxpayer, their spouse, minor child nor their HUF (where applicable) owns residential accommodation at the place where the taxpayer ordinarily resides, works or carries on business or profession.
- Where the taxpayer owns residential accommodation elsewhere, the restriction also applies if it is occupied by the taxpayer and its annual value is determined under the specified self-occupied-property provisions of Section 23.
- The taxpayer meets the prescribed declaration and recordkeeping requirements, including Form 10BA where applicable.
These conditions are more specific than simply not receiving HRA. Owning a home in the same city can disqualify a claim even when the taxpayer pays rent for a different residence there.
Section 80GG deduction calculation
Under the 1961 Act, the deduction is the least of the following amounts:
| Calculation | Amount |
|---|---|
| Rent paid minus 10% of adjusted total income | Actual qualifying rent less 10% of adjusted total income |
| Monthly statutory ceiling | Rs. 5,000 per month (up to Rs. 60,000 for 12 months) |
| Income-based ceiling | 25% of adjusted total income |
Adjusted total income for the calculation is not necessarily gross salary or the figure on a payslip. The statutory explanation and prescribed computation require determining total income before the Section 80GG deduction and making the relevant adjustments for specified other deductions and income categories. Refer to the applicable return instructions for the relevant year.
Practical calculation examples
Example 1: Annual rent of Rs. 1,80,000
Assume adjusted total income is Rs. 6,00,000 and qualifying rent is Rs. 1,80,000 for 12 months. Rent minus 10% of income is Rs. 1,20,000; the statutory ceiling is Rs. 60,000; and 25% of income is Rs. 1,50,000. The least is Rs. 60,000, assuming all eligibility conditions are satisfied.
Example 2: Lower rent
Assume adjusted total income is Rs. 4,00,000 and annual rent is Rs. 72,000. The three figures are Rs. 32,000, Rs. 60,000 and Rs. 1,00,000 respectively. The deduction is Rs. 32,000, subject to the statutory requirements.
Form 10BA, documents and evidence
Rule 11B and Form 10BA govern the prescribed declaration for a Section 80GG claim under the 1961 Act. Keep rent receipts, rental agreement, landlord details, bank transfer records and evidence of actual residence. Where required, submit the declaration through the prescribed income-tax filing process and retain its acknowledgement. A rent receipt alone does not override the ownership restrictions.
Section 80GG versus HRA under Section 10(13A)
HRA exemption under Section 10(13A), read with Rule 2A, applies to eligible house rent allowance received from an employer. Section 80GG is a separate deduction for qualifying taxpayers without such HRA income. The same rent cannot be used to obtain overlapping benefits contrary to the applicable conditions.
Old and new income-tax regimes
For assessment years governed by the 1961 Act, Section 80GG is generally a deduction available under the old tax regime. It is generally unavailable when computing income under the concessional regime of Section 115BAC. For periods beginning on or after 1 April 2026, apply the Income-tax Act, 2025 and its corresponding provisions rather than assuming the same section numbers or reliefs continue unchanged.
Original statutory text and legislative notes
The following extract is preserved from the original webpage as a historical reference. Footnote numbers and legislative annotations belong to the original text. Check the official consolidated enactment and relevant amendments before relying on it for a particular year.
Read original Section 80GG statutory extract and amendment notes
1In computing the total income of an assessee, not being an assessee having any income falling within clause (13A) of section 10, there shall be deducted any expenditure incurred by him in excess of ten per cent of his total income towards payment of rent (by whatever name called) in respect of any furnished or unfurnished accommodation occupied by him for the purposes of his own residence, to the extent to which such excess expenditure does not exceed 2 five thousand rupees per month or twenty-five per cent of his total income for the year, whichever is less, and subject to such other conditions or limitations as may be prescribed, having regard to the area or place in which such accommodation is situated and other relevant considerations:
Provided that nothing in this section shall apply to an assessee in any case where any residential accommodation is
(i) owned by the assessee or by his spouse or minor child or, where such assessee is a member of a Hindu undivided family, by such family at the place where he ordinarily resides or performs duties of his office or employment or carries on his business or profession; or
(ii) owned by the assessee at any other place, being accommodation in the occupation of the assessee, the value of which is to be determined 3 under clause (a) of sub-section (2) or, as the case may be, clause (a) of sub-section (4) of section 23.
Explanation. In this section, the expressions ten per cent of his total
income and twenty-five per cent of his total income shall mean ten per cent or
twenty-five per cent, as the case may be, of the assessees total income before
allowing deduction for any expenditure under this section.
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1. Ins. by Act 21 of 1998, s. 30 (w.e.f. 1-4-1998).
2. Subs. by Act 28 of 2016, s. 39, for two thousand rupees w.e.f. 1-4-2017).
3. Subs. by Act 14 of 2001, s. 40, for under sub-clause (i) of clause (a) or, as
the case may be, clause (b) of sub-section (2) of section 23 (w.e.f. 1-4-2002).
Frequently asked questions
What is the maximum Section 80GG deduction?
The maximum under the historical 1961 Act formula is Rs. 5,000 per month, subject also to the rent-minus-10% test and the 25% adjusted-income test.
Can a self-employed person claim Section 80GG?
Yes, if the individual satisfies the conditions, including residence, ownership and declaration requirements.
Can I claim Section 80GG if I receive HRA?
Generally no where the relevant income falls under Section 10(13A). Check the applicable facts and tax-year rules.
Is Form 10BA required?
The prescribed declaration under Rule 11B is Form 10BA for claims under the 1961 Act. Follow the filing procedure applicable to the relevant year.
Can I claim rent if I own a house elsewhere?
Possibly, but only if the detailed property-ownership restrictions in Section 80GG are satisfied, including the rules for property owned elsewhere and occupied by the taxpayer.
Official legal and tax references
For updated legislation and filing procedures, consult Income Tax Department, India Code, Income Tax e-Filing Portal and e-Gazette of India.
This article provides general legal information and does not replace advice based on a taxpayer's individual circumstances.