Section 80GG Rent Deduction for Self-Employed Without HRA
Section 80GG of the Income Tax Act provides a deduction to individuals who pay rent for residential accommodation but do not receive House Rent Allowance (HRA) from their employer, applying to both salaried individuals without HRA and self-employed professionals. Deduction under Section 80GG can be claimed only under the old tax regime. Most self-employed individuals and freelancers miss this because they assume rent deductions are unavailable without HRA, despite paying rent that can reduce taxable income by up to ₹5,000/month or 25% of income.
Not financial, legal, or tax advice. Verify independently before acting.
Independent check: The claim is fully corroborated by Indian tax authorities: Section 80GG of the Income Tax Act allows self-employed individuals and salaried employees without HRA to claim a rent deduction of up to ₹5,000/month (₹60,000/year), subject to the lower of 25% of adjusted income or actual rent minus 10% of income, and it is only available under the old tax regime requiring Form 10BA.
Sources
Independent verifier's sources
- https://www.paisabazaar.com/tax/section-80gg/
- https://www.avivaindia.com/insurance-guide/tax-savings/reduce-tax-on-rent-with-section-80gg
- https://enterslice.com/learning/income-tax/act/section-80gg/
- https://gocredit.money/news/no-hra-claim-60k-rent-deduction-under-section-80gg-20260620
- https://uja.in/blog/features-articles/understanding-section-80gg-of-income-tax-act/
Not financial, legal, or tax advice. Verify independently before acting.