No HRA? Claim ₹60K Rent Deduction Under Section 80GG
If you are a freelancer, self-employed, or business owner, you cannot get HRA. But Section 80GG lets you claim a rent deduction up to ₹60,000 per year — most people simply don't know it exists.
A freelancer paying ₹15,000/month rent can save more tax than a salaried friend with HRA — if they know this one rule.
Your rent payments can cut your tax bill by this much — even without HRA
Key Takeaways
Check your rent agreement and payment receipts — you will need proof of rent paid to claim 80GG when filing your ITR.
File Form 10BA on the income tax portal before claiming 80GG — this is a mandatory self-declaration that most people skip and lose the deduction.
Calculate all three limits (₹5,000/month, 25% of income, rent minus 10% of income) and pick the lowest — use a free tax calculator or ask your CA to confirm your eligible amount.
If you are a freelancer, self-employed, or business owner, you cannot get HRA. But Section 80GG lets you claim a rent deduction up to ₹60,000 per year — most people simply don't know it exists.
Here's what happened: Section 80GG of the Income Tax Act allows non-salaried individuals to claim rent paid as a deduction — up to ₹5,000 per month (₹60,000 per year).. To qualify, neither you nor your spouse or minor child should own a residential property in the city where you currently live and work.. The actual deduction is the lowest of three amounts: ₹5,000/month, 25% of total income, or rent paid minus 10% of total income — whichever is least..
What you should do: Check your rent agreement and payment receipts — you will need proof of rent paid to claim 80GG when filing your ITR.. File Form 10BA on the income tax portal before claiming 80GG — this is a mandatory self-declaration that most people skip and lose the deduction.. Calculate all three limits (₹5,000/month, 25% of income, rent minus 10% of income) and pick the lowest — use a free tax calculator or ask your CA to confirm your eligible amount..
If your annual income is ₹6 lakh and you pay ₹8,000/month rent, your 80GG deduction works out to just ₹12,000 — not ₹60,000 — because the 25% of income cap kicks in first. Always run all three calculations.
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- [1]“Renting a house but not receiving HRA? Non-salaried individuals can still claim tax deduction on rent” mint - money · 20 Jun 2026
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