In this guide
What is Section 80GG?
If you pay rent for a home used as your own residence and do not have income qualifying for an HRA exemption under Section 10(13A), you may be able to claim a deduction under Section 80GG of the Income-tax Act, 1961.
For AY 2026-27, the deduction relates to eligible rent paid during FY 2025-26, from 1 April 2025 to 31 March 2026. It is available under the old tax regime, but not under the default new tax regime.
Who can claim the deduction?
You may qualify if you meet the applicable conditions, including:
- You are an individual who pays rent for a furnished or unfurnished home used as your own residence.
- You do not have income qualifying for HRA exemption under Section 10(13A) for the year.
- You, your spouse, minor child or the HUF of which you are a member do not own a residential home at the place where you live, work, carry on business or practise your profession.
- You do not own another home that is treated as self-occupied for tax purposes under the relevant provisions.
The claim must be based on genuine rent paid. Keep the rental agreement, rent receipts and payment records.
How is the Section 80GG deduction calculated?
The deduction is the lowest of these three amounts:
| Calculation | Amount |
|---|---|
| Rent paid minus 10% of adjusted total income | Actual excess, if any |
| 25% of adjusted total income | 25% of the relevant income |
| Statutory maximum | ₹5,000 per month, or ₹60,000 for 12 months |
Adjusted total income is calculated under the tax rules before allowing the Section 80GG deduction. It excludes specified income, including certain capital gains and income taxable under specified provisions. Use the figures relevant to your return rather than applying the percentages to your salary.
Example: Suppose you paid rent of ₹18,000 per month for 12 months and your adjusted total income is ₹6 lakh.
- Annual rent: ₹2,16,000
- Rent minus 10% of adjusted total income: ₹2,16,000 − ₹60,000 = ₹1,56,000
- 25% of adjusted total income: ₹1,50,000
- Annual statutory maximum: ₹60,000
The lowest amount is ₹60,000, so that is the maximum deduction in this example, subject to the eligibility conditions.
File Form 10BA before your ITR
Form 10BA is mandatory if you want to claim Section 80GG. File it electronically before filing your income tax return, then enter its acknowledgement number in Schedule 80GG of your ITR.
Provide the details requested in the form, including your rent, address and landlord information. Keep the acknowledgement and supporting records. Filing Form 10BA does not itself establish eligibility; your claim must also meet Section 80GG’s conditions.
Records to keep
Retain:
- Your rental agreement and rent receipts.
- Bank statements or other proof of rent payments.
- The landlord’s name, address and PAN, where applicable.
- Your Form 10BA acknowledgement and ITR calculation.
Rent receipts are generally not attached to the return, but keep them in case they are requested.
To compare Section 80GG with HRA exemption, see TaxClear’s HRA exemption guide for AY 2026-27. For return preparation, see the salaried employee ITR guide and online ITR filing guide.
Frequently asked questions
Can I claim Section 80GG if I receive HRA?
You cannot claim it for a year in which you have income qualifying for an HRA exemption under Section 10(13A).
Is the maximum deduction ₹60,000?
₹60,000 is the annual cap based on ₹5,000 per month. Your actual deduction may be lower because it is also limited by the other two parts of the calculation.
Is Form 10BA required?
Yes. File Form 10BA before your ITR and enter its acknowledgement number in Schedule 80GG.
Can I claim Section 80GG under the new tax regime?
No. The deduction is available under the old tax regime, subject to eligibility.
Can I claim the deduction if I own a house?
Ownership may disqualify you. This can include certain cases where a home you own elsewhere is treated as self-occupied. Check the ownership conditions for your circumstances before claiming.
