Section 80GG – House Rent Paid

Deduction for House Rent Paid Where HRA is not Received

The following conditions have to be satisfied for claiming deduction under section 80GG –

  • The assessee should not be receiving any house rent allowance exempt under section 10(13A).
  • The accommodation should be occupied by the assessee for  the  purposes of his own residence.
  • The assessee or his spouse or his minor child or an HUF of which he is a member should not own any accommodation at the place where he ordinarily resides or perform duties of his office or employment or carries on his business or profession.
  • The assessee must be living on rent and paying the rent.
  • The deduction is available to all individuals

The Least of the following will be allowed as Deduction:

  1. Actual rent paid – 10% of the total income of the assessee before allowing the deduction, or
  2. 25% of such total income (arrived at after making all deductions under Chapter VI A but before making any deduction under this section), or
  3. Amount calculated at Rs 5,000 p.m.