Section 80GG: Deduction for House Rent Paid Where HRA is not Received

• This deduction is available for rent paid when HRA is not received. The taxpayer, spouse or minor child should not own residential accommodation at the place of employment.
• The taxpayer should not have self-occupied residential property in any other place.
• The taxpayer must be living on rent and paying rent.

Deduction available is the minimum of:

1. Rent paid minus 10% of total income
2. Rs 5000/- per month
3. 25% of total income

For the financial year 2016-17 – Deduction calculation has been raised to Rs 5,000 a month from Rs 2,000 per month.