FAQ’s on Deduction of Rent Paid under section 80GG of Income Tax Act, 1961

FAQ’s on Deduction under section 80GG of Income Tax Act, 1961

Q.1     Persons eligible for claiming deduction?

  1. Only individuals can claim this deduction.
  1. That individual can be a self employed person or an employee who do not receive the house rent allowance.


Q.2     Conditions to claim deduction under this section?

  1. An individual who pays rent for his residential accommodation can claim this deduction. (Thus he should be having some proof of actual payment of rent to any other person)
  1. He should submit a declaration in Form 12BA to the assessing officer.


Q.3     Can person claiming deduction own any house?

  1. The following persons should not own any residential house at the place where he performs his duties under employment or business or profession.
  1. He Himself
  2. His Spouse
  3. His Minor Child
  4. HUF in which he is a member
  1. If the taxpayer owns house at any other place, then he should not claim that property as self occupied property.


Q.4     Manner of Calculation of deduction u/s 80GG?

Deduction u/s 80GG will be lower of the following.

  1. 2000/- per month [Upto FY 2015-16] ;

Rs. 5000/- per month [FY 2016-2017 onwards]

  1. 25% of Gross Total Income
  1. Rent Paid –   10% of Gross total Income


Amit Mundhra FCA

Author: Amit Mundhra CA
Amit Mundhra FCA is a Fellow member of the Institute of Chartered Accountant of India. He is senior partner in Karnani & Co., Chartered Accountants. He is having 20+ years of experience in Income Tax, GST, VAT, Accounting, Audit and Assurance field.


  • Pinki

    Is it mandatory to have rent agreement if we pay rent to our parents?Can we claim such rent under section 80GG?

  • Vijay

    I have a query related to 80GG. If I receive HRA for 4 months from my employer during 2016-17 FY, but do not get HRA for the rest of 8 months due to change of job, can I still claim rebate under this section for 8 months ? Thank you very much.

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