Section 80GG-A Guide For Tax Deduction On Rent Paid Rent[New]

Conditions under section 80GG

1. You are self-employed or salaried
2. You have not received HRA at any time during the year for which you are claiming 80GG HRA component should not form part of your salary to claim 80GG.
3. You or your spouse or your minor child or HUF of which you are a member – do not own any residential accommodation at the place where you currently reside, perform duties of the office, or employment or carry on business or profession.
4. In case you own any residential property at any place, for which your Income from house property is calculated under applicable sections (as a self-occupied property), no deduction under section 80GG is allowed.
5. You will be required to file Form 10BA with details of payment of rent

Eligible Amount of Deduction Under 80GG

The lowest of these will be considered as the deduction under this section-

1. Rs.5,000 per month
2. 25% of the total Income (excluding long-term capital gains, short-term capital gains under section 111A and Income under Section 115A or 115D and deductions under 80C to 80U. Also, income is before making a deduction under section 80GG).
3. Actual rent less 10% of Income
   Do take benefit of this section – provided all conditions have been fulfilled by you.

Q1. If I am claiming HRA then can I claim deduction under section 80GG also?

Ans:  No, if you are claiming HRA then you cannot claim deduction under section 80GG. The benefit can be availed of one only i.e. either of HRA or Section 80GG.

Q2. Who can claim this deduction?

Ans: Only individuals who are self employed person or who do not receive HRA, can claim deduction under this section.

Q3. What is Form 10 BA?

Ans: It is a declaration that has to be filed by an individual who wants to claim deduction under section 80GG for rent paid on rental property.