Section 80GG: Rent Deduction Without HRA
By Varun M
If you don't receive HRA — whether your salary simply doesn't include it, or you're self-employed with no salary at all — this is the deduction you're actually looking for. It runs on a completely different formula from HRA's own three-way minimum.
HRA Exemption Calculator
For the standard HRA case — this article covers what applies when you don't receive HRA at all.
The short answer
Section 80GG gives you a deduction equal to the lowest of: ₹5,000/month (₹60,000/year), 25% of your total income, or your rent minus 10% of your total income. Old regime only, and you'll need to file Form 10BA.
The three-way minimum — a different set of numbers from HRA
Like HRA exemption, 80GG is capped by the lowest of three figures — but the figures themselves are different, and there's no metro/non-metro distinction:
- ₹5,000/month, or ₹60,000/year (a flat statutory cap, not a percentage of anything)
- 25% of your total income for the year
- Rent paid minus 10% of your total income
Worked example — self-employed consultant
Total annual income ₹6,00,000, rent paid ₹10,000/month (₹1,20,000/year):
- Rent − 10% of income: ₹1,20,000 − ₹60,000 = ₹60,000
- 25% of income: ₹1,50,000
- Statutory cap: ₹60,000
- Deduction = lowest of the three = ₹60,000/year (a tie between the rent-based limb and the statutory cap)
Worked example — salaried, no HRA component
Total annual income ₹4,50,000, rent paid ₹6,000/month (₹72,000/year):
- Rent − 10% of income: ₹72,000 − ₹45,000 = ₹27,000
- 25% of income: ₹1,12,500
- Statutory cap: ₹60,000
- Deduction = lowest of the three = ₹27,000/year — here the rent-based limb binds, well below the statutory cap
A figure worth double-checking: ₹5,000/month, not ₹2,000
While researching this article, one source cited ₹2,000/month as the cap — that's the pre-2016 limit, long superseded. We confirmed ₹5,000/month (₹60,000/year) against a cleaner, more current source before publishing. If you see ₹2,000/month cited elsewhere, treat it as outdated.
Eligibility conditions
- You must not have received HRA at any point during the financial year — not just currently. Switching from an HRA-paying job to a non-HRA one mid-year can disqualify you for that year.
- You, your spouse, your minor child, or an HUF you're a member of must not own residential property in the city where you live or work.
- You can own property in a different city and still claim 80GG for rent paid where you actually live — but only if you don't also claim that owned property as self-occupied for tax purposes.
- You must actually pay rent for residential accommodation — this isn't available if you live rent-free.
Filing requirement: Form 10BA
A self-declaration confirming your rent payment and that you meet the conditions above, filed before your ITR due date. As of this article's verification, Form 10BA hasn't been renamed or replaced under the Income-tax Rules, 2026 — unlike Form 12BB, which was replaced by Form 124 for HRA and other salary-side declarations.
Old regime only
Like HRA exemption itself, Section 80GG is unavailable under the new tax regime. If you're weighing whether the old regime is worth it once you factor this deduction in, see the Old vs New Tax Regime Calculator.
Related reading
- HRA exemption in Bengaluru, Hyderabad, Pune & Ahmedabad — if your salary does include HRA, this is the calculation you actually want.
- HRA: rent paid to parents — the ownership condition that also applies to 80GG claims.
- HRA exemption without rent receipts — the documentation thresholds, for the HRA case.
FAQ
A deduction for rent paid by people who don't receive HRA — either salaried employees whose salary has no HRA component, or self-employed individuals and freelancers with no salary at all. It's the least of: ₹5,000/month (₹60,000/year), 25% of your total income, or your rent minus 10% of your total income. Section 80GG is a 1961-Act citation (still correct for AY 2026-27); the Income-tax Act, 2025 renumbers it from Tax Year 2026-27 onward, but we haven't confirmed the new section number to a reliable source yet.
₹5,000/month (₹60,000/year) is the current, correct figure — confirmed against a clean source during this article's verification. You may see ₹2,000/month cited elsewhere; that's an outdated pre-2016 figure some older or poorly-maintained content still repeats. Don't rely on it.
You're disqualified from 80GG for that year — the condition is that you haven't received HRA at any point during the financial year, not just currently. If you switched from an HRA-paying job to a non-HRA one mid-year, this can catch you out.
Not if you, your spouse, your minor child, or an HUF you're a member of owns residential property in the city where you live or work. If you own property in a DIFFERENT city, you can still claim 80GG for rent paid where you actually live — but only if you don't also claim that owned property as self-occupied for tax purposes.
Form 10BA — a self-declaration confirming your rent payment and that you meet the eligibility conditions. File it before your ITR due date. It hasn't been renamed or replaced under the Income-tax Rules, 2026, unlike some other payroll-related forms.
No — like HRA exemption, Section 80GG is available only under the old tax regime. See the Old vs New Tax Regime Calculator to check whether the old regime is worth it overall once you factor this in.
Last verified: 14 Aug 2026
Sources: Section 80GG, Income Tax Act, 1961; Form 10BA; incometaxindia.gov.in (Form 10BA reference page).
Section 80GG is a 1961-Act citation, still correct for AY 2026-27. The Income-tax Act, 2025 renumbers sections across the board from Tax Year 2026-27 onward, but we haven't found a reliable source confirming Section 80GG's new number — we're not guessing at one. See what changed under the Income-tax Act, 2025.
This is indicative information. Confirm your exact eligibility and deduction amount with a qualified tax professional before filing or making financial decisions.