Section 80GG Deduction

Section 80GG Deduction is available for taxpayers on rent paid on a residence used for his own purposes. The maximum deduction allowed under Section 80GG is Rs.60,000. Deduction under Section 80GG can be claimed only if the taxpayer has not received HRA from the employer.

Income Tax Deduction for Rent Paid

To claim Section 80GG deduction, the following conditions must be fulfilled by the taxpayer:

HRA Not Received from Employer
The taxpayer must not have received any house rent allowance (HRA) from the employer.
Not a Home Owner
The taxpayer or spouse or minor child must not own a house property. In case of a Hindu Undivided Family (HUF), the HUF must not own a house property where the taxpayer resides.
Form 10BA Declaration
The taxpayer must file a declaration in Form 10BA that he/she has taken a residence on rent in the previous year and that he/she has no other residence.
Income Tax Deduction for Rent Paid

Amount of Deduction under Section 80GG

Maximum deduction under Section 80GG is capped at Rs.60,000. Normally, the deduction under Section 80GG is the lower of the following three amounts:

25% of Adjusted Total Income
Rent Paid minus 10% of Adjusted Total Income
Rs.5000 per Month
Income Tax Deduction for Rent Paid

Form No.10BA

To claim deduction under Section 80GG, the taxpayer must file a declaration in Form 10BA. Form 10BA can be filed online by logging on to the Income Tax E-Filing website. In Form 10BA, the taxpayer must declare the amount of rent paid and the name of the landlord.

Form 10BA Format

Amount of Deduction under Section 80GG

Amount qualifying for deduction shall be the amount spent on rent in excess of ten percent of the assessee’s total income before allowing deduction for any expenditure under this section. Deduction shall be restricted to lower of the following amounts:

  1. 15% of the total income of the assessee before allowing deduction for any expenditure under this section; or
  2. Amount calculated at five thousand rupees per month.

Declaration in Form No.10BA

A declaration in Form No. 10BA has been filed by the assessee as required under rule 11B of the Income-tax Rules, 1962. For filing Form 10BA logon to e-filing website. Goto 'Prepare and Submit Online Form (other than ITR)' under Tab 'e-file'. Select Form 10BA from the dropdown list and proceed to fill in the form and submit.

INDIAFILINGS

India's Largest Business Services Platform
Welcome IndiaFilings

OUR MISSION

We help Entrepreneurs start and operate successful businesses

IndiaFilings.com is India's largest online business services platform dedicated to helping people easily start and manage their business, at an affordable cost. Our aim is to help the entrepreneur on the legal and regulatory requirements, and be a partner throughout the business lifecycle, offering support at every stage to ensure the business remains compliant and continually growing.

IndiaFilings.com partners with a network of experienced Chartered Accountants, Company Secretaries, Lawyers, Cost Accountants, Chartered Engineers, Ex-Bankers and Financial Experts across India to provide a comprehensive range of services for small and medium sized enterprises.

IndiaFilings Map Data
Reasons to choose IndiaFilings
google-partner

IndiaFilings is a Google Partner. Google Partners are tasked with helping businesses market their service or products online.

Google Partner
tuv-sud

IndiaFilings is ISO 9001:2008 Certified by TUV SUD, a leading Certification Body recognized worldwide.

TUV ISO Certified
red-herring-winner

IndiaFilings.com is a winner of Red Herring Top 100 Asia Award. Red Herring recognizes promising companies from across the world.

Red Herring Award
crisil-verified

IndiaFilings is a CRISIL Verified Business. CRISIL is a subsidiary of Standards & Poor, a leading International Rating Agency.

CRISIL Verified
In The Media

LEARNING CENTER

We have put together an amazing collection of article, guides, videos and business tips in our Learning Center. Planning to start a business or need legal help? Visit the IndiaFilings Learning Center and you will find articles and guides on a wide range of topics. Feel free to share our articles and bookmark the IndiaFilings Learning Center.

Vibrant Team

A talented workforce that works in collaboration with a network of over 6000+ Professionals.

24/7 Support

Get support through phone, email, mobile app or live chat - 24/7, 365 days.

EMI Payment

Easily pay online with EMI payments, credit or debit card, net banking, PayPal and more.

X Need help with something?

Need help with something?

loading...