Section 80GG Deduction is available for taxpayers on rent paid on a residence used for his own purposes. The maximum deduction allowed under Section 80GG is Rs.60,000. Deduction under Section 80GG can be claimed only if the taxpayer has not received HRA from the employer.

Income Tax Deduction for Rent Paid

To claim Section 80GG deduction, the following conditions must be fulfilled by the taxpayer:

HRA Not Received from Employer

The taxpayer must not have received any house rent allowance (HRA) from the employer.

Not a Home Owner

The taxpayer or spouse or minor child must not own a house property. In case of a Hindu Undivided Family (HUF), the HUF must not own a house property where the taxpayer resides.

Form 10BA Declaration

The taxpayer must file a declaration in Form 10BA that he/she has taken a residence on rent in the previous year and that he/she has no other residence.