Tax Guide · 15 June 2026
No HRA from Employer? Claim Rent Deduction 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.
By Mr. Govind Dhawale
Last reviewed
15 June 2026
In this section
Answers
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No HRA in your salary means you get no tax break on the rent you pay.
Section 80GG still lets you deduct up to ₹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 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?
All four conditions must hold simultaneously. Failing any one disqualifies the claim.
| Condition | Requirement |
|---|---|
| HRA | Must NOT appear in salary. Not received from employer at all. |
| Own residential property | Taxpayer, spouse, or minor child must NOT own property in the city of residence/work. |
| Tax regime | Old Tax Regime only. New regime disallows all Chapter VI-A deductions. |
| Form 10BA | Must be filed on the e-filing portal before submitting the ITR. |
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 ₹8 lakh income paying ₹8,000/month rent, the cap works out to ₹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).
| Cap | Formula | AY 2026-27 ceiling |
|---|---|---|
| (a) Fixed monthly cap | Rs. 5,000 per month | Rs. 60,000 per year |
| (b) Percentage of income | 25% of your total income before this deduction | No fixed ceiling — scales with income |
| (c) Excess rent rule | Rent paid minus 10% of total income | No fixed ceiling — scales with rent and income |
Source: Section 80GG, Income Tax Act 1961. Total income = gross total income before this deduction.
Worked example (AY 2026-27)
Freelancer. Annual total income: Rs. 8,00,000. Annual rent paid: Rs. 96,000 (Rs. 8,000/month).
(a) Rs. 5,000 x 12 = Rs. 60,000
(b) 25% of Rs. 8,00,000 = Rs. 2,00,000
(c) Rs. 96,000 minus 10% of Rs. 8,00,000 (Rs. 80,000) = Rs. 16,000
Lowest = Rs. 16,000. 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. File it on the Income Tax e-filing portal 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 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
If your employer pays HRA, claim Section 10(13A) using the formula in our HRA exemption calculation guide. Section 80GG applies when no HRA appears in your salary. The two cannot both be claimed in the same year.
Rent receipts you need
You do not upload receipts with the ITR, but retain them for seven years for scrutiny. Each receipt must cover a specific month, name the landlord and address, state the amount in figures and words, and include the UTR for digital payments. The same 14-field format required for Section 10(13A) applies here — see 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. Generate compliant monthly rent receipts.
References & related
Primary sources
Last reviewed: 15 June 2026