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Free Section 80GG calculator for FY 2025-26 (AY 2026-27). Find your exact rent deduction (up to ₹60,000), check eligibility, and file Form 10BA correctly.
Free Section 80GG calculator for FY 2025-26 (AY 2026-27). Find your exact rent deduction (up to ₹60,000), check eligibility, and file Form 10BA correctly.
Income & rent details
Gross income minus LTCG, special-rate income, and other Chapter VI-A deductions (except 80GG)
Total rent paid in the financial year (monthly rent × months)
Months in the FY for which rent was paid (1–12)
City type does not affect the 80GG formula, but is required for Form 10BA
Eligibility check
Even partial HRA disqualifies you from 80GG
Property in a different city does not disqualify you
All calculations run in your browser. Your financial data is never stored.
Section 80GG eligibility, limits, and filing
Yes, salaried employees can claim 80GG, BUT only if their employer does NOT provide HRA (House Rent Allowance) as part of their salary package. If you receive any HRA — even partially — you cannot claim 80GG.
No. Section 80GG is exclusively available under the Old Tax Regime. If you opt for the New Tax Regime (Section 115BAC), all Chapter VI-A deductions including 80GG are disallowed.
Yes, filing Form 10BA is mandatory. It is a declaration submitted to the Income Tax Department confirming that you pay rent for accommodation and do not own property in the same city. File it before submitting your ITR.
Yes, you can pay rent to your parents provided: (1) there is a genuine rent agreement, (2) rent is paid via bank transfer, (3) the rent income is declared and taxed in your parent's ITR. Cash payments are discouraged. The arrangement must be bona fide.
Adjusted Total Income (ATI) = Gross Total Income minus (a) Long-term capital gains, (b) Short-term capital gains taxed at 15%, (c) Income taxed at special rates under Sections 115A–115D, (d) All other Chapter VI-A deductions EXCEPT Section 80GG itself. For most salaried/professional taxpayers, ATI ≈ gross income minus 80C deductions.
Owning property in a DIFFERENT city does not disqualify you — provided you are not claiming the self-occupied property benefit for that house. Ownership in the same city of work/business is the disqualifier.
Yes. Section 80GG was designed for self-employed individuals — freelancers, consultants, business owners — who do not receive HRA. They can claim 80GG if they satisfy all eligibility conditions.
The maximum permissible deduction is ₹5,000 per month (₹60,000 per year) — but only if this is the lowest of the three formula values. The actual deduction is the MINIMUM of: (1) Rent paid − 10% ATI, (2) 25% of ATI, and (3) ₹5,000 × months.
PAN is mandatory if total rent paid in a year exceeds ₹1,00,000. If annual rent is ≤₹1,00,000, PAN is not required but recommended.
If both spouses are salaried without HRA and they genuinely pay rent separately, in principle both can claim. However, if they live in the same rented house and only one person pays rent, typically only that person can claim.
Free Section 80GG calculator for FY 2025-26 (AY 2026-27). Find your exact rent deduction (up to ₹60,000), check eligibility, and file Form 10BA correctly.
Every year, thousands of salaried professionals and freelancers pay rent out of pocket and assume the Income Tax Act gives them no relief because their salary slip shows no HRA. That assumption costs them up to ₹60,000 in deductions annually. The law has a dedicated provision for exactly this situation — Section 80GG. Whether you are a consultant in Pune billing clients directly, a startup employee whose CTC has no HRA component, or a small business owner renting a flat in Mumbai, this section meaningfully reduces your taxable income. The Section 80GG Rent Deduction Calculator on Toolisky handles the three-limb maths and shows you precisely what you can claim. This guide covers the legal framework, the formula, required documents, Form 10BA filing, the new acknowledgement-number requirement for AY 2026-27, and the mistakes that get claims rejected during scrutiny — all verified for FY 2025-26.
Use the free Section 80GG Rent Deduction Calculator on Toolisky →
Section 80GG sits inside Chapter VI-A of the Income Tax Act, 1961 — the same chapter that holds 80C, 80D, and 80E. It was inserted to close a gap the HRA system left open. Salaried employees who receive HRA get tax relief under Section 10(13A). Self-employed professionals, consultants, and salaried staff whose pay package excludes HRA had no equivalent benefit, even though they pay rent every month. Section 80GG fixes that by allowing a direct deduction from total income for rent paid on residential accommodation.
The fixed monthly ceiling was raised from ₹2,000 to ₹5,000 by the Finance Act, 2016 — making the maximum annual deduction ₹60,000. That cap is unchanged for FY 2025-26. One critical point: the benefit is available only under the old tax regime. If you have moved to the new regime (the default from AY 2024-25 onwards under Section 115BAC), Section 80GG is off the table entirely. For the statutory text and the latest notifications, refer to the Income Tax Department of India portal.
Eligibility is narrower than most people expect. Every condition below is cumulative — satisfy all of them, not most.
The deduction is not simply the rent you paid. It is the lowest of three independently calculated amounts. This three-limb structure is why manual calculations go wrong so often.
| Limb | Amount |
|---|---|
| Fixed ceiling (Finance Act 2016) | ₹5,000/month = ₹60,000/year |
| 25% of Adjusted Total Income | 25% × ATI |
| Actual rent paid minus 10% of ATI | Annual rent − (10% × ATI) |
The deduction allowed is the lowest of these three. In most middle-income cases the ₹60,000 ceiling wins — but that label is misleading whenever income is modest or rent is low.
Assume an Adjusted Total Income of ₹6,00,000 and monthly rent of ₹12,000 (annual rent ₹1,44,000).
The lowest figure is ₹60,000. That is the deduction under Section 80GG, even though actual rent paid was ₹1,44,000 — the statutory ceiling binds. To run your own numbers without spreadsheet errors, use the Section 80GG Rent Deduction Calculator.
Adjusted Total Income (ATI) is not Gross Total Income, and confusing the two is the single most common error in Section 80GG calculations. Start with your Gross Total Income, then subtract: long-term capital gains taxable under Section 112; short-term capital gains under Section 111A; income chargeable under Sections 115A to 115D; and all Chapter VI-A deductions except Section 80GG itself. The resulting figure is the base for both the 25% limb and the 10% limb. Entering gross salary or net taxable income instead of ATI overstates the deduction and is the kind of discrepancy flagged in salary tax assessments.
The calculator runs the three-limb formula in the background. The output is only as accurate as the inputs you provide. Here is how to fill each field correctly.
Step 1 — Enter your Adjusted Total Income (ATI). This is not your gross salary or CTC. Start with your Gross Total Income, then subtract long-term capital gains under Section 112, short-term capital gains under Section 111A, special-rate income under Sections 115A to 115D, and all Chapter VI-A deductions except 80GG itself (subtract 80C, 80D, 80E, etc., but leave 80GG out). If you enter gross salary here, your deduction will be overstated and the claim will fail in scrutiny.
Step 2 — Enter your annual rent paid. Multiply your monthly rent by the number of months you actually paid during FY 2025-26. Include only base rent — exclude maintenance charges, society fees, parking fees, and utility bills. If you paid ₹15,000 per month for 12 months, enter ₹1,80,000. Mid-year moves or new employment: calculate pro-rata accordingly.
Step 3 — Enter the number of months rent was paid. This field accepts 1–12. New employees, job-switchers, or those who moved cities mid-year should enter the actual count, not default to 12. The calculator uses this to validate consistency with your annual rent figure.
Step 4 — Select city type (Metro or Non-Metro). Form 10BA requires the city of rented accommodation, so this field is collected for record-keeping. Unlike the HRA exemption, the Section 80GG formula does not change based on metro classification — the three-limb formula is identical for all cities.
Step 5 — Select your tax regime. Choose Old Regime to proceed. Selecting New Regime flags you as ineligible, because Section 80GG is unavailable under Section 115BAC. There is no workaround — regime choice is binary for this deduction.
Step 6 — Confirm you do not receive HRA. Select "No" only if zero HRA was received in FY 2025-26. Even one month of HRA disqualifies you for the entire year. If your salary slip shows HRA as a component — even at ₹0 value — check with your payroll team before answering.
Step 7 — Property ownership question. Answer "Yes" only if you, your spouse, or your minor child owns residential property in the same city where you currently rent. Property in another city does not affect this step. Joint ownership with parents or siblings also counts.
Step 8 — Rent paid to parents. Answer truthfully. The calculator does not penalise a "Yes" — paying rent to parents is legally valid — but it triggers an on-screen reminder about additional compliance: written rent agreement, bank-transfer payments, and rent declared in the parent's ITR.
Once all eight fields are filled, the calculator runs the three-limb formula instantly and shows the deduction allowed along with a breakdown so you can see which limb bound the final figure.
Form 10BA is the mandatory self-declaration prescribed under Rule 11B of the Income Tax Rules, 1962. It tells the department that you genuinely pay rent, that you do not receive HRA, and that you do not own property at your place of residence or work. Without this form on record, your 80GG claim has no legal foundation.
Key compliance points for FY 2025-26 (AY 2026-27):
The two provisions serve different taxpayer categories and operate under entirely different mechanisms.
| Feature | Section 80GG | HRA Exemption (Section 10(13A)) |
|---|---|---|
| Who can claim | Salaried without HRA + self-employed | Salaried employees with HRA only |
| Tax regime | Old regime only | Old regime only |
| Maximum annual benefit | ₹60,000 | No fixed cap |
| Separate form required | Form 10BA (with acknowledgement number in ITR) | No separate form |
| Employer involvement | Not needed | Mandatory |
HRA is generally more generous because it is uncapped and tied to a percentage of basic salary. Section 80GG fills the gap for those structurally excluded from HRA — but the ₹60,000 ceiling is binding. If you are weighing salary restructuring or a regime switch, running both scenarios through the Old vs New Tax Regime Calculator clarifies which path produces lower tax for your specific income and deductions.
Section 80GG claims attract scrutiny because they often involve cash-heavy transactions and family arrangements. Organise these before you file:
Yes, this is fully legal and a common legitimate tax-planning move. But the arrangement must be real, not a paper transaction. Four conditions make it bulletproof: a genuine rental agreement between you and your parents documenting the terms; rent reflecting market rates for the locality (₹500 a month for a flat in Bandra invites immediate scrutiny); payments made by bank transfer, not cash; and your parents declaring this rent as income under "Income from House Property" in their own return.
There is a built-in family tax efficiency here. If your parents are senior citizens in a lower or nil tax slab, the rent they receive attracts less tax than what you save at your marginal rate. The department accepts these arrangements — it objects only when rent is artificially inflated to maximise your deduction or deflated to suppress parental tax. Stick to market rates and document everything.
Most disallowances are not fraud — they are basic errors the department flags automatically. Avoid these.
The end-to-end process for FY 2025-26 (AY 2026-27):
Calculate your Section 80GG deduction free on Toolisky →
Section 80GG rarely sits alone in tax planning. It interacts with regime choice, capital gains treatment, advance tax interest, and standard deduction. The tools below let you stress-test the full picture before you commit to filing.
Yes, but only if HRA does not form any part of their salary structure for any month of the financial year. Many startup employees, contract staff, and those on consolidated pay packages fall into this category. The claim is allowed only under the old tax regime, Form 10BA must be filed before the ITR, and the acknowledgement number must be entered in Schedule 80GG. Receiving HRA even for one month means no 80GG for the entire year.
No. Section 80GG is not available under the new regime introduced by Section 115BAC. The new regime trades off most Chapter VI-A deductions — including 80GG — in exchange for lower slab rates. To claim 80GG for FY 2025-26, you must explicitly opt for the old regime when filing your ITR. Salaried taxpayers should communicate this choice to their employer at the start of the year to avoid excess TDS deductions.
Yes, mandatory under Rule 11B of the Income Tax Rules, 1962. It is a self-declaration that you pay rent, do not receive HRA, and do not own property at your place of residence or work. For FY 2025-26, the form must be e-filed and e-verified on the Income Tax portal before ITR submission, and the resulting acknowledgement number must be quoted in Schedule 80GG of the return. Non-audit deadline: 31 July 2026. Audit cases: 30 September 2026. Skipping this step typically results in the deduction being disallowed during Section 143(1) processing.
Yes, a fully legitimate and widely used arrangement. It requires a written rental agreement, market-rate rent, bank-transfer payments (not cash), and parents declaring the rent under "Income from House Property" in their own ITR. If parents are senior citizens in a lower tax slab, the overall family tax outflow drops meaningfully. Token rent without parental tax declaration is the most frequent reason these claims are rejected in scrutiny.
Adjusted Total Income is Gross Total Income reduced by long-term capital gains under Section 112, short-term capital gains under Section 111A, special-rate income under Sections 115A to 115D, and all Chapter VI-A deductions except 80GG itself. This adjusted figure is the base for both the 25% limb and the 10% limb of the three-part formula. Using gross salary or net taxable income instead of ATI is the most frequent calculation error in 80GG claims.
Owning property in a different city does not automatically disqualify you — but how that property is treated matters. If it is declared self-occupied or deemed let-out under Section 23, the 80GG deduction is denied. If the property is genuinely let out and rental income is offered to tax under House Property, you may still be eligible, provided no property is owned in your current city of work or residence.
Yes — freelancers, consultants, and self-employed professionals are among Section 80GG's primary intended beneficiaries. With no employer to provide HRA, this deduction is the closest equivalent relief for their rent expense. They must file Form 10BA, keep proof of rent payment, opt for the old regime, and ensure no residential property is owned in the city where they carry on their profession. The deduction is claimed in ITR-3 or ITR-4 under Chapter VI-A.
The ceiling is ₹60,000 per year (₹5,000 per month), raised from ₹2,000 per month by the Finance Act, 2016, and unchanged for FY 2025-26. The actual deduction is the lowest of three calculations — the ₹60,000 ceiling, 25% of ATI, and actual rent minus 10% of ATI — so many taxpayers receive less than ₹60,000 unless both rent and income are sufficiently high.
The landlord's PAN becomes mandatory when annual rent paid exceeds ₹1,00,000. If your landlord refuses to share their PAN after the threshold is crossed, the department can disallow the deduction. The cleanest approach is to secure the PAN at the time of signing the rental agreement, before total payments reach the threshold.
Both spouses can claim 80GG only if each independently satisfies all eligibility conditions and pays rent from their own income. In practice, most rental arrangements have a single primary tenant, so only one spouse claims. If the rent agreement is in joint names and both contribute from separate bank accounts, both can claim proportionate deduction. Double-claiming the same rent payment from a single bank account is treated as misreporting and attracts penalty under Section 270A.
Receiving HRA for even one month disqualifies you from Section 80GG for the entire year. The provision is binary — either you received HRA in FY 2025-26, or you did not. There is no partial or proportionate claim. If you switched jobs mid-year and one employer paid HRA while the other did not, you can claim HRA exemption under Section 10(13A) for the HRA months but cannot claim 80GG for the remainder.
Log in to the Income Tax e-filing portal with your PAN credentials, go to e-File → Income Tax Forms → File Income Tax Forms, and search for Form 10BA. Select AY 2026-27 for FY 2025-26, enter your address, landlord details, rental period, amount paid, and mode of payment. Submit and e-verify using Aadhaar OTP, net banking, or DSC. Save the acknowledgement number — you will need to enter it in Schedule 80GG when filing your ITR.
Calculations verified by our team including CA Anita Patil. View our full accuracy policy and meet the team →
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