{"id":7628,"date":"2025-07-11T07:15:11","date_gmt":"2025-07-11T07:15:11","guid":{"rendered":"https:\/\/lemonn.co.in\/blog\/?post_type=glossary&#038;p=7628"},"modified":"2025-07-11T07:15:16","modified_gmt":"2025-07-11T07:15:16","slug":"section-80gg","status":"publish","type":"glossary","link":"https:\/\/lemonn.co.in\/blog\/glossary\/section-80gg\/","title":{"rendered":"Section 80GG"},"content":{"rendered":"<p><strong><a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/section-80gg\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Section 80GG<\/a><\/strong> of the <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/income-tax-act\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Income Tax Act<\/a> lets you <strong>claim <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/tax\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>tax<\/a> deduction on rent<\/strong> you pay&#x2014;<strong>even if you don&#x2019;t get HRA (House Rent Allowance)<\/strong> from your employer.<\/p>\n\n\n\n<p>In simple words:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>If you pay house rent <strong>but don&#x2019;t get HRA<\/strong>, you can still save tax using <strong>Section 80GG<\/strong>.<\/p>\n<\/blockquote>\n\n\n\n<h2 id=\"who-can-claim-deduction-under-section-80gg\" class=\"wp-block-heading\"><strong>Who Can Claim Deduction Under Section 80GG?<\/strong><\/h2>\n\n\n\n<p>You are eligible if:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>You are <strong>salaried or self-employed<\/strong><\/li>\n\n\n\n<li>You <strong>do not receive HRA<\/strong><\/li>\n\n\n\n<li>You (or your spouse\/children) <strong>do not own a house<\/strong> in the city where you live<\/li>\n\n\n\n<li>You live in <strong>rented accommodation<\/strong><\/li>\n<\/ul>\n\n\n\n<h2 id=\"maximum-deduction-allowed\" class=\"wp-block-heading\"><strong>Maximum Deduction Allowed<\/strong><\/h2>\n\n\n\n<p>You can claim <strong>the least<\/strong> of the following three:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>&#x20B9;5,000 per month (i.e., &#x20B9;60,000 per year)<\/li>\n\n\n\n<li>25% of your total income (excluding long-term <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/capital-gain\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">capital gain<\/a>s, etc.)<\/li>\n\n\n\n<li>Actual rent paid &#x2013; 10% of total income<\/li>\n<\/ol>\n\n\n\n<h2 id=\"simple-example\" class=\"wp-block-heading\"><strong>Simple Example<\/strong><\/h2>\n\n\n\n<p>Let&#x2019;s say:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Your total income = &#x20B9;4,00,000<\/li>\n\n\n\n<li>Rent paid = &#x20B9;8,000\/month = &#x20B9;96,000\/year<\/li>\n\n\n\n<li>25% of income = &#x20B9;1,00,000<\/li>\n\n\n\n<li>Rent &#x2013; 10% of income = &#x20B9;96,000 &#x2013; &#x20B9;40,000 = &#x20B9;56,000<\/li>\n<\/ul>\n\n\n\n<p>So, the deduction will be <strong>&#x20B9;56,000<\/strong> (whichever is least among &#x20B9;60,000, &#x20B9;1,00,000, and &#x20B9;56,000)<\/p>\n\n\n\n<h2 id=\"how-to-claim-80gg-deduction\" class=\"wp-block-heading\"><strong>How to Claim 80GG Deduction<\/strong><\/h2>\n\n\n\n<ol class=\"wp-block-list\">\n<li>File <strong>Form 10BA<\/strong> (a declaration that you don&#x2019;t own a home)<\/li>\n\n\n\n<li>Show rent receipts or rent agreement as proof<\/li>\n\n\n\n<li>Claim the deduction in your <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/income-tax\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Income Tax<\/a> Return under <strong>Section 80GG<\/strong><\/li>\n<\/ol>\n\n\n\n<h2 id=\"important-notes\" class=\"wp-block-heading\"><strong>Important Notes<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>If your employer gives you HRA, you <strong>cannot claim 80GG<\/strong><\/li>\n\n\n\n<li>You <strong>must live in a rented house<\/strong>&#x2014;owning a home in the same city makes you ineligible<\/li>\n\n\n\n<li>You can claim it <strong>every year<\/strong> if eligible<\/li>\n<\/ul>\n\n\n\n<h2 id=\"real-life-example\" class=\"wp-block-heading\"><strong>Real-Life Example<\/strong><\/h2>\n\n\n\n<p>Ravi is a freelancer living in Delhi on rent, paying &#x20B9;7,000 per month. He doesn&#x2019;t get HRA. Using Section 80GG, he files Form 10BA and claims a deduction, helping him reduce taxable income and save tax.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Section 80GG of the Income Tax Act lets you claim tax deduction on rent you pay&#x2014;even if you don&#x2019;t get HRA (House Rent Allowance) from your employer. In simple words: If you pay house rent but don&#x2019;t get HRA, you can still save tax using Section 80GG. Who Can Claim Deduction Under Section 80GG? You [&#x2026;]<\/p>\n","protected":false},"author":9,"featured_media":0,"menu_order":0,"template":"","meta":{"footnotes":""},"class_list":["post-7628","glossary","type-glossary","status-publish","hentry"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7628","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary"}],"about":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/types\/glossary"}],"author":[{"embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/users\/9"}],"version-history":[{"count":1,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7628\/revisions"}],"predecessor-version":[{"id":7629,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7628\/revisions\/7629"}],"wp:attachment":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/media?parent=7628"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}