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Deduction in Respect of Rent Paid under Section 80GG

Income Tax Deduction in respect of Rent Paid under Section 80GG of the Income Tax Act, 1961.Section 80GG is applicable to individual salaried taxpayer who is not receiving House rent allowance (HRA) and should not own any residential accommodation. Then individual can claim deduction for rent paid subject to maximum of Rs 2,000/- per month.

Conditions and Calculation for deduction under section 80GG

  1. The taxpayer should be an Individual
  2. The taxpayer is an employee but he does not get house rent allowances during the previous year from the employer
  3. The taxpayer files a declaration in form no. 10BA* regarding the expenditure incurred by him towards payment of rent. : Download Income Tax Form 10BA
  4. The persons (taxpayer, spouse, adopted/minor child or HUF of which the taxpayer is member) should not own any residential accommodation.
  5. If the taxpayer owns a residential accommodation at any other place, then in respect of that house the concession is not claimed by him [under sec. 23(2)(a) or 23(4)9a). 

Amount of deduction-

Least of the following-

  • Rs. 2,000 per month
  • 25 % of adjusted GTI
  • The excess of actual rent paid over 10% of total income.
  • Actual amount paid

Adjusted GTI=

Gross total income
Less: Long term capital gains
Less: Short term capital gain (at the rate of 15%)(sec.111A)
Less: Income referred to in (sec. 115A or 115D)
Less: Amount deductible (80CCC to 80U)( except 80GG)

XXXXX

XXXXX

XXXXX

XXXXX

XXXXX

Total income for the purpose of section 80GG

XXXXX

Notes:-

  1. If the assessee resides in a concessional house provided by the deduction in respect of rent paid can be claimed under this section.
  2. The assessee must submit a declaration in Form No. 10BA alongwith the return of income.

List of Income Tax Deduction under section 80C, 80CCG, 80D, 80DD, 80E,80G, 80GG to 80U

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2 thoughts on “Deduction in Respect of Rent Paid under Section 80GG
  • Nitish Rathi says:

    Dear Sir/Ma’am,

    I’ve not reported Home Rent Expenses to my employer and couldn’t avail
    Tax deductions for HRA for the financial year 2012-13. I have all the
    legitimate proofs, including Rent Agreement and Rent receipts. I’ve asked
    the payroll help-desk at my office, and they have refused to change
    Form-16/CTC statement for the past financial year, and hence I would have
    to file for refund through an Accountant/Subject matter expert.

    Can I get a Tax-refund, for Tax-exemption for HRA (Section 80GG), not disclosed in
    Form-16 by my employer?

  • Narayana Mahapatro says:

    sir,how to deduct HRA from the gross income.I am paying more than what I am receiving HRA>Please clarify