If your salary doesn't include HRA — or you're a self-employed taxpayer paying rent — Section 80GG offers a real deduction. The complete eligibility, cap formula, Form 10BA filing process and worked examples for AY 2026-27.
Section 80GG is one of the least-claimed deductions in Indian taxation — largely because most salaried taxpayers already get HRA exemption u/s 10(13A). But for the millions who do NOT receive HRA (consultants, freelancers, business owners and salaried employees of companies that don't offer HRA), Section 80GG is the only way to claim rent paid against taxable income. Here is the complete CA-grade walkthrough for AY 2026-27.
Section 80GG allows deduction of rent paid for residential accommodation when the taxpayer does NOT receive any house-rent allowance (HRA). It is intended to put HRA-less taxpayers on a similar footing as salaried employees who receive HRA u/s 10(13A).
Deduction = LEAST of:
Form 10BA is a one-page declaration filed on incometax.gov.in → e-File → Income Tax Forms → File Income Tax Forms → 10BA. It captures:
If Form 10BA is not filed before the ITR, the CPC system disallows the 80GG claim automatically.
Section 80GG is NOT available under the default new tax regime. To claim 80GG, opt into the OLD regime by filing Form 10-IEA before the ITR due date.
Least of: (i) 60,000; (ii) 25% × 10L = 2,50,000; (iii) 2,40,000 - 1,00,000 = 1,40,000. Deduction = ₹60,000.
Least of 60k / 1.5L / (1.2L - 60k = 60k). Deduction = ₹60,000.
Least of 60k / 1L / (3L - 40k = 2.6L). Deduction = ₹60,000.
Least of 60k / 37.5k / (50k - 15k = 35k). Deduction = ₹35,000.
Eligible — Pune flat is let-out, not self-occupied; condition satisfied.
NOT eligible — owns residential property at same place.
NOT eligible — HRA received during the year disqualifies 80GG entirely.
Eligible; rent receipts and landlord PAN required (since annual rent > ₹1L).
Allowed only if commercially genuine — landlord must declare as rental income, ownership in their name, payment via bank.
ZERO 80GG deduction. Re-evaluate regime choice.
₹60,000 per year (₹5,000/month).
No — only under the old regime.
Yes — mandatory before submitting the ITR.
Yes — provided no HRA is received at any point in the year.
Disputed. CBDT's standard interpretation restricts it to individuals.
Yes — provided it is not self-occupied (i.e., declared let-out / deemed let-out).
If annual rent > ₹1,00,000.
Yes — provided ownership and rental income are genuinely declared on the parent's ITR.
Yes — for different properties. You rent one and own (let-out) another.
Rent agreement, rent receipts, bank statements, landlord PAN.
Yes — for rent paid for residence in India against India-taxable income.
No — only RESIDENTIAL rent qualifies.
CPC will disallow the 80GG deduction. File a revised return after submitting Form 10BA.
No minimum. But deduction reduces if rent ≤ 10% of total income.
No — Section 80GG disallows even a single month's HRA receipt during the year.
Section 80GG is a small but meaningful relief for HRA-less taxpayers — worth up to ₹18,720 of tax saved in the 30% bracket. Treat Form 10BA as a strict precondition, not an afterthought, and Taxpex CAs will file it and your ITR together.
Senior contributor at Taxpex Consultancy. Reviewed by a practising Chartered Accountant. Published on 11 June 2026 · Updated on 11 June 2026.
Income Tax / ITR — done for you by Taxpex
Prefer a CA to handle this end to end? Income Tax Return Filing is our dedicated, fixed-fee service — this guide explains the process, that page gets it filed.
Go to Income Tax Return FilingReliable, accurate and CA-reviewed income tax return filing for salaried individuals, freelancers, professionals, startups and businesses — with proactive tax planning.
Every Section 80C instrument compared on tax, lock-in, returns and liquidity — plus three real combinations that maximise your ₹1.5 lakh limit in under 10 minutes a year.
8 June 2026 · 28 minLatest slabs, rebates, deductions and side-by-side calculations for salaried, freelancers, professionals and business owners — with a decision framework that ends the regime confusion forever.
11 June 2026 · 24 minThe complete CA-grade breakdown of Section 80D for AY 2026-27 — every limit, every sub-limit, parents vs self, senior-citizen rules, the ₹5,000 preventive check-up cap, HUF claims, multi-year premium amortisation and 25 worked examples.
Yes — ₹50,000 additional deduction under Section 80CCD(1B), over and above ₹1.5L in 80C.
via NPS CalculatorNo. HRA under Section 10(13A) is available only in the old regime.
via HRA CalculatorForm 16 is for salary TDS (annual); Form 16A is for non-salary TDS (quarterly).
via TDS Return FilingYes. FD interest is taxable at your slab rate and TDS is deducted if interest crosses ₹40,000/year (₹50,000 for senior citizens).
via FD Calculator