Rent Deduction Calculator — Section 80GG and Form 10BA
Reviewed by Finin2min Editorial Desk · Last reviewed 11 August 2026
Calculate the old-regime deduction for rent paid where no HRA exemption is received and ownership conditions are satisfied.
Check section 80GG deduction
Form 10BA is required before claiming the deduction.
Eligible deduction
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Lowest formula amount
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Test
Amount
Rent minus 10% adjusted income
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25% adjusted income
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₹5,000 × eligible months
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How This Is Calculated
Section 80GG lets taxpayers who pay rent but don't receive HRA (and don't own a house in the city they work in) claim a deduction — the least of: actual rent paid minus 10% of total income, ₹5,000 per month, or 25% of total income. It requires filing Form 10BA declaring the rent details, and is available only under the old tax regime.
Frequently Asked Questions
Who can claim Section 80GG deduction?
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Taxpayers who pay rent but don't receive HRA as part of their salary (including self-employed individuals, since HRA is a salary component), and who don't own a house in the city where they live or work (or if they do, aren't claiming self-occupied property benefits on it) — this fills the gap for renters who can't use the HRA exemption route.
What is the maximum Section 80GG deduction?
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The lowest of three amounts: actual rent paid minus 10% of total income, ₹5,000 per month (₹60,000/year), or 25% of total income — whichever of these three figures is smallest becomes the deductible amount.
Is Form 10BA required to claim 80GG?
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Yes. Filing Form 10BA, declaring your rent payment details and confirming you meet the eligibility conditions, is mandatory to claim the Section 80GG deduction — without it, the claim isn't valid even if you otherwise qualify.
Scope: Computes the rent deduction available under Section 80GG for taxpayers who pay rent but do not receive HRA as part of their salary (e.g., self-employed individuals, or salaried employees whose employer does not pay HRA).
Calculation logic
Deduction = lowest of: (a) ₹5,000 per month (₹60,000/year), (b) rent paid minus 10% of total income (excluding certain items per the definition used for this section), (c) 25% of total income.
Eligibility requires filing Form 10BA declaring that no HRA was received during the year, that the taxpayer (or spouse/minor child/HUF of which they are a member) does not own residential accommodation at the place of employment/business, and that no self-occupied property is owned and claimed as such elsewhere.
Inputs and assumptions
Available only under the old tax regime.
'Total income' for the 10% deduction in step (b) is computed before allowing the Section 80GG deduction itself and before certain other deductions, per the specific definition used for this section — the calculator applies this definition rather than gross total income.
Exclusions and edge cases
Cannot be claimed by a taxpayer who receives any HRA component from their employer, even if the amount is small — this deduction is specifically for cases where no HRA is paid, which the calculator gates on the user's confirmation.
Form 10BA must be filed for the claim to be valid — the calculator computes the eligible amount but does not itself generate or file Form 10BA.