NRI Income Tax & Compliance

Section 80GG: Claim Tax Deductions on Rent Paid for Indian and NRIs?

autohr img By Pankaj Shaw | Last Updated : 05 Jan, 2026
Section 80GG
Table of Contents

Under Section 80GG of the Indian Income Tax Act, individuals are eligible for a tax deduction on rent paid for residential accommodation, provided they do not receive a House Rent Allowance (HRA) from their employer. This deduction applies to both self-employed and salaried individuals under the old tax regime.

In this blog, we will discuss the aspects of Section 80GG of the Income Tax Act, including eligibility, maximum deduction limit, form requirements, and more. 

Key Takeaways
  • An individual can claim a tax deduction under this section if he or she does not receive HRA as a component of their CTC from their employer. 
  • Section 80GG is available to both salaried individuals and self-employed taxpayers. 
  • Form 10BA is mandatorily to be filed within the due date for claiming tax relief under Section 80GG. 
  • You can claim a tax refund under Section 80GG only if you file taxes under the old tax regime. 
  • Documents required for claiming a rent deduction under section 80GG include yearly rent receipts, rent agreement, a declaration in form 10BA, the landlord's PAN card, and other supporting documents such as canceled cheques, bank statements, or more. 

What Is Section 80GG Deduction Of The Income Tax Act 

Section 80GG of the indian income tax act provides tax relief to individuals who pay rent for their residential property but do not receive any house rent allowance from their employers. The provisions under this section apply to both self-employed professionals and salaried individuals. 

To claim a rent deduction under section 80GG, individuals must pay rent for either an unfurnished or a furnished house that they have occupied as their own residence. 

Eligibility For Claiming Tax Deduction Under Section 80GG

To claim a rent deduction under section 80GG, you must fulfill the following conditions. 

  • You must file your income tax return under the old tax regime. 
  • You have not received House Rent Allowance (HRA) from your employer at any time during the entire financial year or claimed HRA exemption. 
  • You will have to file Form 10BA within the due date. 
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Maximum Tax Deduction Limit Under Section 80GG

The lowest of the following will be considered as the section 80GG tax deduction limit. 

  • Rs 5,000 per month or Rs 60,000 in a year. 
  • 25% of the total income before allowing any deduction for expenses under section 80GG. 
  • Actual rent is less the 10% of income before allowing any deduction for expenses under section 80GG. 

The Requirement Of Form 10BA

Form 10BA is a declaration in which it is mandatory to confirm compliance with the conditions for claiming a tax deduction under section 80GG of the Income Tax Act.

Form 10BA must be filed and submitted online before the due date of filing the return, which is usually 31 July 2026 for FY 2025-26. 

The details mentioned below must be filled in Form 10BA

  • Name and PAN of assessee. 
  • Full address of assessee 
  • Tenure and rent amount
  • Rent Payment Mode
  • Name and address of the landlord. 
  • PAN card for the landlord if you rent is above Rs 1 lakh. 

A declaration that no other house property is owned by the assesse himself or by his children or spouse or by the HUF (Hindu Undivided Family) of which he is a member. 

The Bottom Line

Understanding the concept of Section 80GG is quite important for those who did not receive a house rent allowance from their employer but pay rent themselves for their residential accommodation. 

So, if you are a self-employed individual looking for tax deduction options to reduce your tax burden, then Section 80GG is your pick. You can claim the benefit of HRA under Section 80GG and minimize your taxation liability.

Additionally, as an NR for your finding cross-border taxes managed, don't worry, SaveTaxs has your back. We help NRIs file their ITR in India, whether it is capital gains, rental income, or cross-border repatriation and remittance. Savings ensure accurate compliance with the ITR filing process. 

Connect with us as we serve our clients 24/7 across all time zones. 

Note: This guide is for information purposes only. The views expressed in this guide are personal and do not constitute the views of Savetaxs. Savetaxs or the author will not be responsible for any direct or indirect loss incurred by the reader for taking any decision based on the information or the contents. It is advisable to consult either a CA, CS, CPA or a professional tax expert from the Savetaxs team, as they are familiar with the current regulations and help you make accurate decisions and maintain accuracy throughout the whole process.

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Pankaj Shaw (Tax Expert)

Mr Shaw brings 8 years of experience in auditing and taxation. He has a deep understanding of disciplinary regulations and delivers comprehensive auditing services to businesses and individuals. From financial auditing to tax planning, risk assessment, and financial reporting. Mr Shaw's expertise is impeccable.

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Frequently Asked Questions

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No, if you are claiming HRS they you are not eligible to claim under section 80GG of the Income Tax Act. This benefit is available only in one case: HRA or section 80GG.

Yes, salaried individuals can claim this deduction if they receive HRA from their employer.

Form 10BA is a declaration that has to be filed by individuals claiming tax deduction under section 80GG for the rent they have paid on their residential property.

Yes, you can pay your monthly rent to your aorenses. However, for this, you need to enter into a rental agreement with them, and they must include the rental payment as part of their income. However, this can be availed only when the old tax regime is opted for.

Yes, you can claim the benefits under section 80GG even when the property is in your father's name, and you are paying rent to him. However, you have to enter into a rental agreement with your father and submit Form 10BA to claim the benefits.

No, you cannot claim a deduction under Section 80GG of the Income Tax Act under the new tax regime.

The total income for the purpose of estimating section 80GG limits is the total income of the assessee before allowing any deduction under this section.

Yes, you can claim a tax deduction under this section, provided you are filing your taxes under the old tax regime.