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Tax Guide · 15 June 2026

No HRA From Your Employer? How Do You Claim Rent Under Section 80GG?

Self-employed individuals and salaried employees who do not receive House Rent Allowance can claim a rent deduction under Section 80GG of the Income Tax Act, up to Rs. 5,000 per month (Rs. 60,000 per year), by filing Form 10BA before the ITR due date. The deduction is available only under the Old Tax Regime and requires rent receipts for every month claimed.

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Myth

No HRA in your salary means you get no tax break on the rent you pay.

Fact

Section 80GG still lets you deduct up to Rs. 60,000 a year, even with zero HRA.

What is Section 80GG?

Short answer

If you pay rent but your salary has no HRA, Section 80GG[1] lets you deduct part of that rent when you file your ITR.

It covers freelancers, the self-employed, and salaried people whose pay slip carries no HRA (the House Rent Allowance most employers add to salary).

Two conditions apply. You can claim it only under the Old Tax Regime for AY 2026-27 (FY 2025-26). And neither you, your spouse, nor your minor child may own a home in the city where you live or work.

Who qualifies for Section 80GG?

Short answer

You qualify only if all four Section 80GG[1] conditions hold at once: no HRA, no owned home in your city, the Old Tax Regime, and a filed Form 10BA.

  • HRA must NOT appear in your salary, and you must receive none from your employer at all.
  • Neither you, your spouse, nor your minor child may own residential property in the city of residence or work.
  • You must use the Old Tax Regime, because the New regime disallows all Chapter VI-A deductions.
  • You must file Form 10BA[2] on the e-filing portal before submitting the ITR.
  • Failing any one of these four conditions disqualifies the entire claim.

How much can you deduct? The least-of-three formula

Short answer

Your deduction is the smallest of three numbers, not your full rent. For most renters that lands at a few thousand rupees a month. Example: on Rs. 8 lakh income paying Rs. 8,000/month rent, the cap works out to Rs. 16,000 for the year.

The Section 80GG deduction is the lowest of three figures, computed for the full year. Current caps apply for AY 2026-27 (FY 2025-26).

CapFormulaAY 2026-27 ceiling
(a) Fixed monthly capRs. 5,000 per monthRs. 60,000 per year
(b) Percentage of income25% of your total income before this deductionNo fixed ceiling, scales with income
(c) Excess rent ruleRent paid minus 10% of total incomeNo fixed ceiling, scales with rent and income

Source: Section 80GG, Income Tax Act 1961[1]. Total income = gross total income before this deduction.

Section 80GG deduction equals the lowest of three caps: Rs. 5,000 per month (Rs. 60,000 per year); 25 percent of total income before this deduction; or rent paid minus 10 percent of total income.
Deduction = lowest of (a), (b), and (c). In most cases for moderate earners, the excess-rent rule (c) is the binding figure.

What does the calculation look like for a real freelancer?

Short answer

On Rs. 8,00,000 income with Rs. 96,000 annual rent, the Section 80GG[1] deduction is Rs. 16,000, the lowest of the three caps.

Freelancer. Annual total income: Rs. 8,00,000. Annual rent paid: Rs. 96,000 (Rs. 8,000/month).

  • (a) Fixed cap: Rs. 5,000 x 12 = Rs. 60,000.
  • (b) Percentage of income: 25% of Rs. 8,00,000 = Rs. 2,00,000.
  • (c) Excess rent: Rs. 96,000 minus 10% of Rs. 8,00,000 (Rs. 80,000) = Rs. 16,000.
  • Lowest of the three = Rs. 16,000, so the Section 80GG deduction is Rs. 16,000 for the year.

How to file Form 10BA (before submitting ITR)

Form 10BA is a declaration under Rule 11B of the Income Tax Rules[4]. File it on the Income Tax e-filing portal[3] before or alongside the ITR. You fill in: PAN, rented-property address, landlord name and address, annual rent paid, and a declaration that neither you nor your spouse or minor child owns a residential property in the same city.

  • Log in to incometax.gov.in[3] with your PAN and password.
  • Go to e-File > Income Tax Forms > File Income Tax Forms > Form 10BA.
  • Select Assessment Year 2026-27.
  • Fill in the rental period, annual rent amount, landlord name, and rented-property address.
  • Declare that neither you, your spouse, nor your minor child owns a residential property in the same city.
  • Submit and download the acknowledgement before filing the ITR-1 or ITR-2.

Section 80GG vs Section 10(13A) HRA exemption: which applies?

Short answer

Claim Section 10(13A) when your employer pays HRA; claim Section 80GG[1] when no HRA appears in your salary. You cannot claim both in the same year.

  • If your employer pays HRA, use Section 10(13A) and the formula in our HRA exemption calculation guide.
  • Section 80GG applies only when no HRA appears in your salary.
  • The two provisions cannot both be claimed in the same year.

What rent receipts do you need to keep?

Short answer

You do not upload receipts with the ITR, but you must retain compliant monthly receipts for six years for scrutiny; the ITR due date for AY 2026-27 is 31 July 2026 (31 August 2026 if you file ITR-3 or ITR-4 with business or professional income).

  • Each receipt must cover a specific month and name the landlord and address.
  • State the amount in both figures and words, and include the UTR for digital payments.
  • The same 14-field format required for Section 10(13A) applies here, per the rent receipt checklist.
  • If annual rent exceeds Rs. 1,00,000, include the landlord PAN as a precaution.
  • The ITR due date for AY 2026-27 is 31 July 2026; self-employed filers using ITR-3 or ITR-4 have until 31 August 2026. No filing extension has been announced.
Generate compliant monthly rent receipts

References

  1. 1.Section 80GG, Income Tax Act 1961 — Income Tax Department — Rent deduction for individuals not receiving HRA
  2. 2.Form 10BA — Income Tax Department — Declaration form required to claim Section 80GG deduction
  3. 3.e-Filing portal — Income Tax Department — AY 2026-27 ITR filing and Form 10BA submission
  4. 4.Rule 11B, Income Tax Rules 1962 — Income Tax Department — Conditions for the Section 80GG rent deduction; Form 10BA declaration basis.

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