Definition
Section 80GG (Rent without HRA)
Section 80GG allows a deduction for rent paid by individuals who do not receive HRA from an employer.
Section 80GG is for people who pay rent but do not get House Rent Allowance — typically the self-employed or salaried individuals whose pay package has no HRA component. It lets them claim a deduction for rent paid, subject to a formula based on income and the rent amount.
To qualify, neither you, your spouse, your minor child nor your HUF should own residential property at your place of work or residence, and you must file a declaration. The deduction is the least of three prescribed limits.
Like HRA, 80GG is an old-regime benefit. Those who receive HRA should use the HRA exemption instead, as 80GG applies only in its absence.
Related terms
- Section 80CSection 80C allows a deduction from taxable income for specified investments and expenses, such as EPF, PPF, ELSS, life insurance premiums and home-loan principal, under the old regime.
- Old vs New Tax RegimeIndia offers two personal income-tax regimes: the old one with various deductions and exemptions, and the new one with lower slab rates but most exemptions removed.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.