Section 80GG allows a deduction for rent paid for furnished or unfurnished accommodation occupied by the assessee for his own residence. It is not available to an assessee who has any income falling within s. 10(13A), the exemption for house rent allowance. The deduction is the expenditure on rent in excess of ten per cent of total income, limited to five thousand rupees per month or twenty-five per cent of total income for the year, whichever is less, and subject to prescribed conditions.
For these limits, "ten per cent of his total income" and "twenty-five per cent of his total income" mean those percentages of total income before allowing the deduction under this section (Explanation).
Operative consequences
No deduction is allowed where residential accommodation is owned by the assessee, his spouse or minor child or, for a member of a Hindu undivided family, by the family, at the place where he ordinarily resides, performs the duties of his office or employment or carries on his business or profession.
No deduction is allowed where the assessee owns accommodation at any other place that is in his own occupation and valued under s. 23(2)(a) or (4)(a).
Any income falling within s. 10(13A) shuts out the deduction altogether.
Under the default regime, s. 115BAC(2)(i) disallows this deduction.
Status
Operative for assessment year 2026-27. Not omitted and not time-limited. The Finance Act, 2026 does not amend s. 80GG.
The Income-tax Act, 1961 governs assessment year 2026-27 and earlier years; the Income-tax Act, 2025 governs tax year 2026-27 onwards. For this subject, the corresponding provision is s. 134.
Case Laws & Commentary
SECTION 80GG — DEDUCTION IN RESPECT OF RENTS PAID
Case Laws & Commentary (Income-tax Act, 1961 as amended by Finance Act, 2026)
STATUTORY SCHEME (editorial summary — verbatim bare-Act text in the companion Block-1 file)
Marginal heading: Deductions in respect of rents paid.
Section 80GG allows an individual a deduction in respect of rent paid for residential accommodation occupied by him, where he does not receive any house rent allowance and neither he, his spouse, minor child nor (for a member of a Hindu undivided family) the family owns any residential accommodation at the place where he ordinarily resides or carries on his business or profession, and he does not own a self-occupied residential house at any other place. The deduction is the least of (i) Rs 5,000 per month; (ii) 25 per cent of total income (before this deduction); and (iii) rent paid in excess of 10 per cent of total income. The claim must be supported by a declaration in Form 10BA.
A. SECTION COMMENTARY
A.1 Structural position
Section 80GG is the rent-paid deduction for individuals who bear rent but receive no house rent allowance (and so cannot claim the section 10(13A) exemption). It is the residual relief for the self-employed and for salaried persons whose pay package contains no HRA.
A.2 Provision taxonomy
A 'least-of-three' computation (Rs 5,000 per month / 25 per cent of total income / rent above 10 per cent of total income), gated by the no-HRA and no-own-house conditions and the Form 10BA declaration.
A.3 Core doctrinal themes
The operative conditions are the absence of HRA, the no-residential-house tests (at the place of residence/work, and no self-occupied house elsewhere), and the Form 10BA declaration. The field is documentary and lightly litigated.
A.4 Legislative evolution / FA amendment trail
The monthly monetary cap was raised to Rs 5,000 by the Finance Act, 2016 (from assessment year 2017-18). Not amended by the Finance Act, 2026; unavailable under the default section 115BAC regime.
A.5 CA practitioner pointers
(1) Available only where no HRA is received and the no-own-house conditions are satisfied. (2) File Form 10BA. (3) Apply the least-of-three computation. (4) A salaried person receiving HRA must use section 10(13A) instead. (5) Unavailable under the default regime.
B. FA 2026 IMPACT NOTE
Section 80GG is NOT amended by the Finance Act, 2026; the least-of-three computation and the no-HRA / no-own-house conditions continue, and the deduction is available only under the old regime.
Held: It does not; disputes are factual (HRA receipt, ownership of accommodation, Form 10BA) and are resolved at first-appellate / Tribunal level on the statutory conditions.
Ratio: Eligibility turns on the no-HRA and no-own-house tests and the least-of-three computation.
Relevance: States candidly the scarcity of authority and identifies the operative conditions.
Editorial note on sourcing
Editorial scheme summary prepared from the Income-tax Act, 1961 as amended by the Finance Act, 2025, read with the Finance Act, 2026; verbatim bare-Act text is carried in the companion Block-1 treatise file. Case law is restricted to reported Supreme Court / High Court authority verified against standard law reports (ITR/Taxman/CTR). Where a deduction is documentary and lightly litigated, that is stated candidly and the governing statutory/administrative material is given.
Function in the statutory architecture
Section 80GG allows a deduction for rent paid for furnished or unfurnished accommodation occupied by the assessee for his own residence. It is not available to an assessee who has any income falling within s. 10(13A), the exemption for house rent allowance. The deduction is the expenditure on rent in excess of ten per cent of total income, limited to five thousand rupees per month or twenty-five per cent of total income for the year, whichever is less, and subject to prescribed conditions.
For these limits, "ten per cent of his total income" and "twenty-five per cent of his total income" mean those percentages of total income before allowing the deduction under this section (Explanation).
Operative consequences
Status
Operative for assessment year 2026-27. Not omitted and not time-limited. The Finance Act, 2026 does not amend s. 80GG.
The Income-tax Act, 1961 governs assessment year 2026-27 and earlier years; the Income-tax Act, 2025 governs tax year 2026-27 onwards. For this subject, the corresponding provision is s. 134.
Case Laws & Commentary
SECTION 80GG — DEDUCTION IN RESPECT OF RENTS PAID
Case Laws & Commentary (Income-tax Act, 1961 as amended by Finance Act, 2026)
STATUTORY SCHEME (editorial summary — verbatim bare-Act text in the companion Block-1 file)
Marginal heading: Deductions in respect of rents paid.
Section 80GG allows an individual a deduction in respect of rent paid for residential accommodation occupied by him, where he does not receive any house rent allowance and neither he, his spouse, minor child nor (for a member of a Hindu undivided family) the family owns any residential accommodation at the place where he ordinarily resides or carries on his business or profession, and he does not own a self-occupied residential house at any other place. The deduction is the least of (i) Rs 5,000 per month; (ii) 25 per cent of total income (before this deduction); and (iii) rent paid in excess of 10 per cent of total income. The claim must be supported by a declaration in Form 10BA.
A. SECTION COMMENTARY
A.1 Structural position
Section 80GG is the rent-paid deduction for individuals who bear rent but receive no house rent allowance (and so cannot claim the section 10(13A) exemption). It is the residual relief for the self-employed and for salaried persons whose pay package contains no HRA.
A.2 Provision taxonomy
A 'least-of-three' computation (Rs 5,000 per month / 25 per cent of total income / rent above 10 per cent of total income), gated by the no-HRA and no-own-house conditions and the Form 10BA declaration.
A.3 Core doctrinal themes
The operative conditions are the absence of HRA, the no-residential-house tests (at the place of residence/work, and no self-occupied house elsewhere), and the Form 10BA declaration. The field is documentary and lightly litigated.
A.4 Legislative evolution / FA amendment trail
The monthly monetary cap was raised to Rs 5,000 by the Finance Act, 2016 (from assessment year 2017-18). Not amended by the Finance Act, 2026; unavailable under the default section 115BAC regime.
A.5 CA practitioner pointers
(1) Available only where no HRA is received and the no-own-house conditions are satisfied. (2) File Form 10BA. (3) Apply the least-of-three computation. (4) A salaried person receiving HRA must use section 10(13A) instead. (5) Unavailable under the default regime.
B. FA 2026 IMPACT NOTE
Section 80GG is NOT amended by the Finance Act, 2026; the least-of-three computation and the no-HRA / no-own-house conditions continue, and the deduction is available only under the old regime.
C. CASE LAW — CLUSTERED BY ISSUE
Cluster C-1 : Conditions and computation
Note on the case-law field for section 80GG
Facts: Section 80GG is a conditioned, capped, documentary rent deduction for individuals without HRA.
Issue: Whether substantial interpretive jurisprudence exists.
Held: It does not; disputes are factual (HRA receipt, ownership of accommodation, Form 10BA) and are resolved at first-appellate / Tribunal level on the statutory conditions.
Ratio: Eligibility turns on the no-HRA and no-own-house tests and the least-of-three computation.
Relevance: States candidly the scarcity of authority and identifies the operative conditions.
Editorial note on sourcing
Editorial scheme summary prepared from the Income-tax Act, 1961 as amended by the Finance Act, 2025, read with the Finance Act, 2026; verbatim bare-Act text is carried in the companion Block-1 treatise file. Case law is restricted to reported Supreme Court / High Court authority verified against standard law reports (ITR/Taxman/CTR). Where a deduction is documentary and lightly litigated, that is stated candidly and the governing statutory/administrative material is given.