Section 80GG — Rent Deduction Without HRA (2026)

Updated: 3 June 2026 | Limit: ₹5,000/month | File Form 10BA | Old regime only

Section 80GG allows a rent deduction for individuals who pay rent but do not receive HRA from their employer — including self-employed persons and salaried employees without an HRA component. The deduction is the minimum of three amounts: (1) Rent paid minus 10% of adjusted gross total income; (2) ₹5,000 per month (₹60,000/year); (3) 25% of adjusted gross total income. Conditions: you (or your spouse or minor child) must not own a house in the city of work/residence. You must file Form 10BA on the income tax portal. Section 80GG is available only in the old tax regime.

₹5,000/mo

Maximum ₹60,000/year deduction under Section 80GG — old tax regime only.
For self-employed and salaried individuals without HRA. Must file Form 10BA online. Cannot own a house in the city of employment.

Section 80GG — Calculation Formula with Example

The 80GG deduction is the lowest of the following three amounts. Use all three and pick the minimum:

Condition	Formula	Example (₹6,000/mo rent; ₹6L income)
Condition 1	Rent paid − 10% of adjusted total income	₹72,000 − (10% × ₹6,00,000) = ₹72,000 − ₹60,000 = ₹12,000
Condition 2	₹5,000 × 12 months	₹60,000
Condition 3	25% of adjusted total income	25% × ₹6,00,000 = ₹1,50,000
Deduction Allowed = Minimum of above		₹12,000 (Condition 1 is least)

The ₹5,000/month cap (Condition 2) most often limits higher-income taxpayers with modest rent. In metro cities, Condition 1 (rent minus 10%) usually limits lower-income taxpayers paying low rent relative to income.

Section 80GG vs HRA Exemption — Key Differences

Parameter	Section 80GG	HRA Exemption (Sec 10(13A))
Who can claim	Self-employed; salaried without HRA component	Salaried employees receiving HRA
Maximum limit	₹5,000/month (₹60,000/year)	Minimum of: actual HRA, 50%/40% of salary, or rent − 10% of salary — can be much higher
House ownership restriction	Cannot own house in city of work/residence	Can own house; restriction only if self-occupied property deduction claimed
Form required	Form 10BA (online, ITR portal)	Rent receipts + landlord PAN (if rent > ₹1L/year)
New tax regime	Not available	Not available
Old tax regime	Available	Available

HRA exemption is generally more beneficial than 80GG because it is calculated as a percentage of salary (50% for metro cities, 40% for non-metro), potentially offering much larger deductions. 80GG with its ₹60,000/year cap is the only option when no HRA is received.

Eligibility Conditions & Form 10BA

To claim 80GG, all of the following conditions must be met:

You must actually be paying rent for a residential accommodation used for your own residence
You must NOT be receiving HRA as a component of your salary/compensation
You, your spouse, or your minor child must NOT own a house in the city/town where you currently reside or work
If you own a house in another city, you should NOT be claiming that property as self-occupied under Section 24 (otherwise 80GG is disallowed)
You must file Form 10BA on the Income Tax e-filing portal (incometax.gov.in) before or while filing your ITR
Rent paid in cash above ₹1 lakh/year: you must provide the landlord's PAN. Rent below this can be paid without PAN disclosure.

Frequently Asked Questions

Who can claim Section 80GG deduction?

Section 80GG can be claimed by: (1) Self-employed individuals who pay rent but do not receive HRA. (2) Salaried employees whose salary structure does not include an HRA component. You CANNOT claim 80GG if: you receive HRA from your employer (even if HRA exemption claimed is zero), or if you (or your spouse or minor child) own a residential property in the city where you live or work, or if you own a house in any other city for which you claim a deduction under Section 24 as self-occupied property.

What is the maximum deduction limit under Section 80GG?

The deduction under Section 80GG is the MINIMUM of the following three amounts: (1) Actual rent paid minus 10% of total income (adjusted gross total income); (2) ₹5,000 per month = ₹60,000 per year (limit fixed since 2016-17 Budget); (3) 25% of total income (adjusted gross total income). "Total income" here means adjusted gross total income — i.e., gross total income reduced by long-term capital gains and certain other deductions, but BEFORE deducting 80GG itself. The ₹5,000/month cap is the most common limiting factor for urban renters.

Can I claim both 80GG and HRA exemption?

No. You cannot claim both simultaneously. If you receive HRA from your employer, you must claim HRA exemption under Section 10(13A) — not 80GG. Section 80GG is specifically for those who do NOT receive HRA. If your employer does not pay HRA and you pay rent, you can claim 80GG. If you receive HRA but it is partially exempt (because rent paid is not enough), you still cannot switch to 80GG for the remainder — HRA rules apply exclusively when HRA is part of the salary package.

What is Form 10BA and when is it needed for 80GG?

Form 10BA is a self-declaration that must be filed by the taxpayer to claim Section 80GG deduction. It is filed online through the Income Tax e-filing portal (not a separate physical form). In Form 10BA, you declare: (a) that you paid rent for the period claimed, (b) the address of the rented accommodation, (c) that you/your spouse/minor child do not own a house in the city of residence/employment, (d) the amount of rent paid. This form must be filed before or at the time of filing your ITR for the relevant year. Failure to file Form 10BA can result in disallowance of the 80GG deduction.

Is Section 80GG available under the new tax regime?

No. Section 80GG is NOT available under the new tax regime (Section 115BAC). The new regime does not allow most Chapter VI-A deductions including 80GG, 80C, 80D, and others. If you want to claim 80GG, you must opt for the old tax regime when filing your ITR. The only deductions available under the new regime are Section 80CCD(2) (employer NPS contribution), standard deduction of ₹75,000 for salaried, and a few others. Evaluate both regimes to determine which gives you a lower tax outgo.

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