Section 80GG – Typically HRA is a component of your salary and you could demand a deduction for HRA. If you really do not earn HRA from the employer and transfer funds for rent for just about any furnished or unfurnished accommodations used by you for your own home, you will demand a deduction of u/s 80GG for the rent you pay. Below are a few conditions which need to be fulfilled.

  • You are a self-employed or salaried individual.
  • You have not earned HRA at any point throughout the year in which you say 80GG The HRA portion should never be part of your 80GG entitlement.
  • You or your partner or small children or HUF, of whom you are a part, do not own a home at the position where you actually reside, conduct office or job, or engage in company or occupation.
  • In the event that you own any residential property at any location where your household income is measured under the relevant sections (as a self-occupied property), no deduction within section 80GG is permitted.
Section 80GG

Must read What is Section 80EE?

You would be asked to submit Form 10BA with specifics of the payment of the rent. The lowest of these shall be regarded as a deduction under Section 80GG.

  • ₹5,000 a month.
  • 25% of the total income (except long-term capital gains, short-term capital gains u/s 111A and income u/s 115A or 115D and 80C to 80U deductions). In addition, the revenue is until creating a deduction u/s 80GG).
  • Actual rent is below 10% of income

Remember to take advantage of this section given that you have met all the requirements.