In general, the employee who is receiving ‘House Rent Allowance’ has a benefit of claiming an available exemption under section 10 (13A) of the Income Tax Act. However, there can be a situation, wherein, the individual (either self-employed or a salaried person) would not be receiving House Rent Allowance, but, is paying rent for his own residence.
In such a situation, such specific individual, who is not receiving House Rent Allowance, can claim the benefit of deduction available under section 80GG of the Income Tax Act, 1961. The provisions of the said deduction are taken up and explained in the existing article.
Deduction under section 80GG is available only to an individual who has not received House Rent Allowance (i.e. HRA) at any time during the year.
Following is the list of conditions which an individual need to fulfil in case he is willing to claim deduction under section 80GG of the Income Tax Act –
It should be noted here that Form No. 10BA contains a declaration that the assessee has used the rented premises for self-use.
Further, additionally it also contains declaration that neither of them are owning any residential house at the place where the assessee performs office duties or ordinarily resides or causes his business / profession.
In Form No. 10BA, the assessee is also required to declare that he is not owning residential house, the value of which is determinable under section 23 (2) (a) or section 23 (4) (a).
Lower of the following amount would be available as a deduction under section 80GG of the Income Tax Act –
One needs to apply the following formula, for arriving at adjusted total income –
Gross total income (sum of income under all heads) XXXX
(-) Deductions u/s 80C to 80U (except section 80GG) XXXX
(-) Short term capital gains under section 111A XXXX
(-) Long term capital gains XXXX
(-) Income covered within the sections 115A, 115AB, 115AC, 115AD and 115D XXXX
Adjusted gross total income XXXX
Frequently Asked Questions (FAQ) –
1. What is 80gg section?
Section 80GG provides deduction, towards rent paid for own residence, to those individuals (self-employed or salaried person) who are not receiving House Rent Allowance.
2. Who can claim 80gg?
Deduction under section 80GG can be claimed by all those individuals who are not received House Rent Allowance.
3. How is 80gg deduction calculated?
Deduction under section 80GG would be lower of the following –
4. Can I claim HRA and 80gg?
No, claiming both HRA and deduction under section 80GG is not possible. The person receiving HRA is debarred from claiming the benefit of deduction under section 80GG.
Other Suggested Articles on Chapter VIA Deductions
|1.||Deduction under section 80C of Income Tax Act|
|2.||Deduction under section 80CCC of Income Tax Act|
|3.||Deduction under section 80CCD of Income Tax Act|
|4.||Deduction under section 80D of Income Tax Act|
|5.||Deduction under section 80DD of Income Tax Act|
|6.||Deduction under section 80DDB of Income Tax Act|
|7.||Deduction under section 80E of Income Tax Act|
|8.||Deduction under section 80EEA of Income Tax Act|
|9.||Deduction under section 80EEB of Income Tax Act|
|10.||Deduction under section 80G of Income Tax Act|
|11.||Deduction under section 80GG of Income Tax Act|
|12.||Deduction under section 80GGA of Income Tax Act|
|13.||Deduction under section 80GGC of Income Tax Act|
|14.||Deduction under section 80QQB of Income Tax Act|
|15.||Deduction under section 80RRB of Income Tax Act|
|16.||Deduction under section 80TTA of Income Tax Act|
|17.||Deduction under section 80TTB of Income Tax Act|
|18.||Deduction under section 80U of Income Tax Act|