Section 134 - Deductions in respect of rents paid
An individual who does not receive house-rent allowance and satisfies the residence conditions can deduct the least of: rent minus 10% of total income, ₹5,000 per month, or 25% of total income.
Reviewed by CA Nikhil Gupta · Updated 9 October 2026
Current-law control
This page uses the consolidated Income-tax Act, 2025 as amended by the Finance Act, 2026. The Act and Income-tax Rules, 2026 operate from 1 April 2026. Earlier years and saved proceedings remain subject to the repeal-and-savings framework.
Primary statute: Income Tax Department consolidated Act | Rules: Notified Income-tax Rules, 2026
2-minute decode
An individual who does not receive house-rent allowance and satisfies the residence conditions can deduct the least of: rent minus 10% of total income, ₹5,000 per month, or 25% of total income.
Who should use this section
Individuals/HUFs or other persons falling within the eligibility wording of this personal-payment deduction; status and payment conditions must be checked for the tax year This applicability note is specific to section 134.
Old-law bridge
1961 Act section 80GG
The bridge is navigational only. A 1961 Act case or rule is carried forward only after checking wording, transition provisions and the current 2025 Act text.
Professional alert
Exception / professional alert Rule 65 requires Form 31. Ownership by the taxpayer, spouse or minor child and use of another self-occupied property can block the claim.
Connected Income-tax Rules, 2026 and Forms
| Rule | Current control | Form |
|---|---|---|
| Rule 65 | Rent deduction declaration | Form 31 |
Worked application
Total income for the formula is ₹6 lakh and annual rent is ₹1.44 lakh. The three figures are ₹84,000, ₹60,000 and ₹1.5 lakh; the deduction is ₹60,000.
Evidence / compliance checklist
- For section 134, retain proof of payment and the instrument/recipient document that establishes statutory eligibility.
- Match beneficiary, ownership/residency/status conditions to the text for the relevant tax year (section 134: Deductions in respect of rents paid).
- Preserve certificate/approval/registration details where the deduction depends on an approved institution or authority (section 134: Deductions in respect of rents paid).
- Keep a computation showing the statutory ceiling, qualifying base and any cash/payment-mode restriction (section 134: Deductions in respect of rents paid).
Common mistake
Claiming section 134 from a payment receipt alone without testing the statutory ceiling, recipient/instrument eligibility, payment mode and required certificate.
Recommended approach
For section 134, fix the governing tax year, identify the operative sub-section for “Deductions in respect of rents paid”, trace every amount to evidence, apply only verified Rule/Form links, and retain a computation that another reviewer can reproduce from the primary source.
Thresholds, periods and timing checkpoints
- exceeding 10% of his total income, subject to a maximum of ₹ 5000 per month, or
- 25% of total income for tax year, whichever is less.
- (5) For the purposes of this section, the expressions “10% of his total income” and
- “25% of his total income” shall mean 10% or 25%, as the case may be, of the total
Judicial / interpretive bridge
No section-specific Supreme Court bridge is included for section 134 unless text-equivalence with the 2025 Act has been checked. Legacy cases should not be transplanted into section 134 merely because the subject is similar.
Related provisions
- Section 21
- Section 133
- Section 135
Current statutory text
Primary-source trail
FAQs
What does section 134 of the Income-tax Act, 2025 cover?
Section 134 covers deductions in respect of rents paid. The operative result depends on the exact statutory conditions shown on this page and applies from 1 April 2026, subject to transition/savings provisions.
Who should check section 134?
Individuals/HUFs or other persons falling within the eligibility wording of this personal-payment deduction; status and payment conditions must be checked for the tax year This applicability note is specific to section 134.
Are there specific Rules or Forms for section 134?
Rule 65 - Rent deduction declaration / Form 31