How to Claim Rent Deduction Without HRA Under Section 80GG

If you pay rent but do not receive House Rent Allowance (HRA) from your employer  or if you are self-employed  you can still save tax. Under Section 80GG, the Income Tax Act allows you to claim a deduction for rent paid by filing a simple online form called Form 10BA.

Who Can Claim Rent Deduction Under Section 80GG?

You are eligible to claim this deduction if you meet all of the following conditions:

• No HRA: You do not receive HRA as part of your salary.
• Old Tax Regime: You opt for the Old Tax Regime for the financial year.
• No Property Ownership: You, your spouse, or your minor child do not own a residential house in the city where you work or live.
• Form 10BA Filed: You submit Form 10BA online before filing your income tax return.

How Much Rent Deduction Can You Claim?

The deduction allowed under Section 80GG is the lowest of the following three amounts:

• Fixed Limit: ₹5,000 per month (₹60,000 per year)
• Income Limit: 25% of your total income (after other deductions)
• Rent Limit: Actual rent paid minus 10% of your total income

How to File Form 10BA Online (Step-by-Step)

Form 10BA must be filed digitally through the Income Tax e-Filing Portal:

1. Log In: Visit the income tax e-filing portal and log in using your PAN and password.
2. Find the Form: Go to e-File > Income Tax Forms > File Income Tax Forms and search for Form 10BA.
3. Enter Details: Fill in rent amount, duration of stay, and landlord’s name and address.
4. Landlord PAN: If annual rent exceeds ₹1,00,000, landlord PAN is mandatory.
5. Verify & Submit: Verify using Aadhaar OTP and submit the form.

Documents You Should Keep for Records

You do not need to upload these documents, but keep them safely in case the tax department asks:

• Rent Agreement: A signed agreement with your landlord.
• Payment Proof: Rent receipts or bank statements showing rent payments.
• Rent Paid to Parents: Allowed if parents report it as income and a formal rent agreement exists.