Section 80GG of income tax act allows a deduction for house rent to a person who gets no HRA from an employer, such as a freelancer, a shop owner or a salaried person whose pay has no HRA. The deduction is the lowest of ₹5,000 a month, 25% of adjusted total income, or rent paid minus 10% of that income, so the most anyone gets is ₹60,000 a year.
It is an old regime deduction for FY 2025-26 and needs a declaration in Form 10BA. Salaried people who do get HRA should use the HRA exemption instead. Other rent and housing reliefs are listed on the deductions page.
Quick facts
Maximum
₹5,000 a month, so ₹60,000 a yearWho can claim
Individuals with no HRA in salary during the months claimedRegime
Old regime onlyForm
Form 10BA, filed on the e-filing portal before the ITRHouse owned
No house at the place of work owned by you, spouse, minor child or your HUFRelated: 80GGC
Full deduction for contributions to a registered political party or electoral trust, not in cash
How the section 80GG of income tax act deduction is worked out
| Limit | Formula |
|---|---|
| Fixed cap | ₹5,000 a month for the months you paid rent |
| Income cap | 25% of adjusted total income |
| Rent cap | Rent paid minus 10% of adjusted total income |
Adjusted total income is your total income before the 80GG claim itself, after other deductions such as 80C, and leaving out long-term capital gains and any section 111A short-term gain on listed shares. That keeps a one-time share sale from inflating the deduction.
Who can use 80GG income tax relief
- You are an individual. HUFs and companies cannot claim it.
- You did not receive HRA for the period. If HRA was part of salary for six months, 80GG can only be looked at for the other months.
- Neither you, your spouse, your minor child nor your HUF owns a home in the city where you live or work.
- If you own a house elsewhere, you must not be claiming it as self-occupied.
- You file Form 10BA with these declarations.
Self-employed people, small traders and pensioners who pay rent are the main users. A salaried worker on a pay structure with no HRA also qualifies.
Worked examples of the 80GG calculation
Case 1: a freelance designer. Adjusted total income is ₹6,00,000 and rent is ₹12,000 a month, ₹1,44,000 for the year.
- Fixed cap: ₹60,000
- 25% of ₹6,00,000: ₹1,50,000
- ₹1,44,000 minus 10% of ₹6,00,000 (₹60,000): ₹84,000
The lowest is ₹60,000, so that is the deduction.
Case 2: a tailor with a small rented room. Adjusted total income ₹4,80,000; rent ₹6,000 a month, ₹72,000 a year. Fixed cap ₹60,000; 25% of income ₹1,20,000; rent minus 10% of income is ₹72,000 minus ₹48,000, which is ₹24,000. Deduction: ₹24,000.
The rent cap usually decides the answer when rent is modest compared with income.
Filing Form 10BA and claiming in the ITR
- Sign in to your account; the e-filing portal accepts your PAN as user ID.
- Go to Income Tax Forms in the e-File menu, then the option to file a form, and search for Form 10BA.
- Choose the assessment year (AY 2026-27 for rent paid in FY 2025-26), fill the landlord's name and address, the rent, the period and the declaration on house ownership.
- Verify and submit; note the acknowledgement number.
- When you prepare the return, opt for the old regime and put the amount under 80GG in the deductions schedule.
Keep rent receipts or the rent agreement and bank records of payment. If rent is above ₹50,000 a month, the tenant also has a TDS duty under rent TDS rules.
80GG, HRA and the new regime
| Point | HRA exemption | Section 80GG |
|---|---|---|
| For whom | Salaried people who receive HRA | Anyone without HRA |
| Limit | Lowest of actual HRA, rent minus 10% of salary, and 40% or 50% of salary | Lowest of ₹60,000 a year, 25% of income, rent minus 10% of income |
| Form | Rent proof to employer | Form 10BA |
| New regime | Not allowed | Not allowed |
Under the Income-tax Act, 2025 the rent deduction is carried into the deductions chapter for tax year 2026-27 and still sits only in the old regime.
Section 80GGC of income tax act
80GGC is a different deduction with a similar name. It allows an individual to deduct the full amount given to a registered political party or an electoral trust. The money must go by cheque, bank transfer or another non-cash mode; cash gifts get nothing. Like 80GG it is an old regime deduction. Companies have a separate section, 80GGB.
Mistakes with 80GG
| Problem | Fix |
|---|---|
| Claiming 80GG when salary already has HRA | Use HRA exemption; 80GG is for those without HRA |
| Skipping Form 10BA | File it before the return; the claim may be denied without it |
| Using total income including capital gains | Remove long-term gains and 111A gains first |
| Spouse owns a flat in the same city | No 80GG; the ownership bar covers spouse and minor children |
This page explains 80GG in general and does not cover every personal situation. Rules can change, so check the claim against the e-filing portal, or get a chartered accountant to confirm it.
Sources we checked
- Income-tax Act, 1961, section 80GG
- Income-tax Rules, 1962, rule 11B and Form 10BA
- Income-tax Act, 1961, section 80GGC
Frequently asked questions
What is 80GG in income tax?
It is a deduction for rent paid by an individual who does not get HRA. The amount is the lowest of ₹5,000 a month, 25% of adjusted total income, or rent minus 10% of that income.
What is the maximum deduction under 80GG?
₹60,000 a year, which is ₹5,000 a month. Many people get less because of the rent minus 10% test.
Can a salaried person claim 80GG?
Yes, if the salary has no HRA component for the period and the other conditions are met. If HRA is received, the HRA exemption applies instead.
Can 80GG be claimed under the new tax regime?
No. Only the old regime allows it.
What is section 80GGC of income tax act?
It lets an individual deduct the full amount donated to a registered political party or electoral trust, paid in any mode other than cash. It applies in the old regime.