HRA missing from your salary? Here’s how to claim a tax deduction for rent

Rent is often one of the biggest expenses for individuals living in rented accommodations. While salaried employees with a House Rent Allowance (HRA) component in their salary can claim tax benefits under Section 10(13A) of the Income Tax Act, others without HRA aren’t left out entirely. The Income Tax Act provides an alternative way to claim deductions for rent paid, even if you don’t receive HRA.

Here’s a detailed guide on how to claim tax deductions for rent without HRA:

Section 80GG: The Alternative for Non-HRA Individuals

“Section 80GG of the Income Tax Act allows individuals to claim a tax deduction on rent paid, provided certain conditions are met,” informs CA Ruchika Bhagat, MD, Neeraj Bhagat & Co.

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This provision is particularly beneficial for:

• Self-employed individuals.
• Salaried employees who do not receive HRA as part of their salary structure.

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Eligibility Criteria for Claiming Deduction Under Section 80GG

To claim a deduction under Section 80GG, you must satisfy the following conditions:

1. No HRA Received
   You must not receive HRA as a part of your salary.
2. Residential Purpose
   “The rent should be paid for a house you live in. This deduction cannot be claimed for rent paid for commercial properties or other residential properties where you do not reside,” says Bhagat.
3. No Self-Owned Accommodation
   Neither you nor your spouse or minor child should own residential property at the place where you ordinarily reside or work.
4. No Claiming on Self-Occupied Property
   If you own property elsewhere and claim it as self-occupied, you cannot claim Section 80GG for rent paid.
5. Furnishing of Form 10BA
   You need to submit Form 10BA to declare that you are not claiming the benefit of HRA and fulfill all the conditions under Section 80GG.

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