Section 80GG to Avail HRA Tax Exemption on Paid House Rent

Section 80GG to Avail HRA Tax Exemption on Paid House Rent

Employee salary is made of many components in which house rent allowance is the second most important one. But the difference between other allowances and HRA is that HRA is partly exempted from tax liability. Under section 10(13A), a certain amount of HRA is non-taxable. This benefit is available only to certain individuals who are salaried and stayed in a rented accommodation. The HRA tax exemption is not available to a self-employed professional or a freelancer.

Avail HRA Tax Exemption through Section 80GG

This deduction is prescribed under the section 80GG which is applicable to individuals and HUFs. Also, if any salaried individual or HUFs claim this deduction then they must not claim any benefit under Section 10(13A). The person receiving house rent allowance must not have any family member or spouse or minor child having own accommodation in the same place where he/she is working. If the person owns a property in another place other than his/her workplace and also claim HRA tax exemption, then the owned property will be considered as let-out property, not as a self-occupied property. To satisfy such conditions, individual needs to declare the same by filing Form 10BA. New Amendments in Income Tax Rules for Charitable Trusts.

To satisfy such conditions, individual needs to declare the same by filing Form 10BA.

Under Section 80GG, individuals who stay in rented place but don’t receive any HRA from employers also can claim deductions. There is a certain house rent allowance exemption available for such condition.

Least of any of the following can be availed in such conditions:

  • INR 5,000 per month
  • Of the total Adjusted Income, 25 percent can be claimed
  • Of the total Adjusted Income, minus 10 percent of the paid rent.

The required document you will need to submit to claim HRA tax exemption is either the rent receipts or the house rent agreement. Also, the PAN card of the landlord is mandatory to submit if the annual rent amount exceeds INR 1,00,000 annually / INR 15,000 monthly. Income Tax Return Liabilities Possessed on EPF withdrawals.

Section 80GG to Avail HRA Tax Exemption on Paid House Rent

There are also provisions made for special cases so that taxpayers do not feel the excess burden of accommodation expenses. If one lives with parents and pays rent to them, then he/she can claim house rent allowance deductions. But the same is not allowed in case of rent paid to the spouse as according to Indian law, spouses are meant to stay in the same accommodation. Also, a taxpayer can claim benefit against home loan interest & principal repayment together. This HRA tax exemption will be only applicable if you work and stay at a rented accommodation in a different city.


  1. Interestingly enough, i saw this blog and though i read with much anxiety.This is the blog that i needed and i have been searching for such blog from a very long time now but today finally i found it and that to even in such an easy language which was really easy for me to understand and very easy to learn from it. Through this i came to know about students and different tax liabilities applicable for the students. It genuinely helped me with the information i was seeking for. The overall look of your web site is magnificent, as
    well as the content!
    Thank you for your great article .

  2. Thanks this blog has really helped me alot. This really helps and tells a process that is required to fill up an Income tax return. This blog tell us step by step how we should fill taxes and yes it is also easy to understand. Each and every details have been mentioned in simple and clear language.
    i would prefer anyone to have a eye on it to clear all their doubts. The best thing about this blog is that we can get every information hear only. we shoud not go on different side to search about itr. Great work keep it up.It tell breifly and accurately about taxes. The blog is very detailed and the way it explains the things is very easy to understand and to retain it really helps a person on how to fill up the ITR and how to enquire about it. Great work from ALL INDIA ITR since it is a very well written and a very useful blog.

  3. Hey,
    Great Blog! Clear and very informative. I have got to know lots of new things about tax Exemption. Thank you for sharing it looking forward to reading more Blogs from you.

    I would like to share some information about a Website name RentalAgreement which provides online House Rent Agreement in a simple and convenient way.


Please enter your comment!
Please enter your name here