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Rent-tax utility

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
Lowest formula amount
TestAmount
Rent minus 10% adjusted income
25% adjusted income
₹5,000 × eligible months

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?
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?
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?
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.
Educational calculator · Reviewed 14 July 2026 · Official law, portal data and professional judgement prevail. Methodology Editorial policy Legal and disclaimer

Methodology, assumptions and sources

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

  1. 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.
  2. 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

Exclusions and edge cases

Sources

Review status: reviewed and approved by CA Nikhil Gupta on 17 July 2026.

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