No HRA? Section 80GG Saves You ₹60K in Tax
If you're a freelancer, self-employed, or business owner paying rent but getting no HRA, Section 80GG of the Income Tax Act lets you still claim a rent deduction — up to ₹60,000 per year.
That's 400 cups of chai or 3 months of a Netflix + Hotstar + Prime combo — saved just by claiming the right deduction.
Your rent deduction under Section 80GG can save you this much in taxes
Key Takeaways
Check your ITR form for Section 80GG — file Form 10BA declaring that you pay rent and do not own property in the same city before submitting your return.
Calculate your eligible deduction: the limit is the LOWEST of ₹5,000/month, 25% of your total income, or actual rent paid minus 10% of your total income.
Keep rent receipts and a signed rent agreement ready — the tax department may ask for these as proof during scrutiny or refund processing.
If you're a freelancer, self-employed, or business owner paying rent but getting no HRA, Section 80GG of the Income Tax Act lets you still claim a rent deduction — up to ₹60,000 per year.
Here's what happened: Section 80GG allows non-salaried taxpayers — freelancers, self-employed, business owners — to claim a deduction for rent paid, even without HRA.. The maximum deduction under 80GG is ₹5,000 per month (₹60,000 per year), subject to whichever of three calculated limits is lowest.. To claim this, you must not own any residential property in the city you live in, and your employer must not provide any HRA component in your salary..
What you should do: Check your ITR form for Section 80GG — file Form 10BA declaring that you pay rent and do not own property in the same city before submitting your return.. Calculate your eligible deduction: the limit is the LOWEST of ₹5,000/month, 25% of your total income, or actual rent paid minus 10% of your total income.. Keep rent receipts and a signed rent agreement ready — the tax department may ask for these as proof during scrutiny or refund processing..
If your spouse or parents own the house you live in, you can still pay them rent, claim 80GG, and they declare it as income — but only if you have a genuine rent agreement and bank transfer trail.
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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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