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What Is 80GG In Income Tax?

Maximize deductions! Learn how 80GG in income tax helps taxpayers without HRA to claim benefits and optimize their taxes.

  • 12 Mar 2024
  • 2 min read
  • 41 views

When it comes to income tax, having an understanding of the deductions can have a significant impact on your financial planning. Let’s explore what is 80GG and how it can be advantageous for taxpayers.

80CCG 1B In Income Tax

 

The primary beneficiaries of Section 80GG are individuals who do not receive a house rent allowance (HRA) but still have expenses.

 

  • What is 80GG in income tax: Section 80GG is a provision within Chapter VI A of the Income Tax Act, 1961, which aims to offer relief to individuals who pay rent for accommodation but do not receive HRA from their employers.

 

  • Eligibility: To be eligible for this deduction, certain conditions must be met by the taxpayer. Some of these are —
  1. Neither the taxpayer nor his/her spouse, minor child, or HUF (Hindu Undivided Family) to which he/she belongs should own any residential property where they reside or work.
  2. The taxpayer has filed a declaration in Form 10BA.

 

  • Deduction amount: The deduction allowed under this Section is calculated as the least of the following —
  1. Actual Rent Paid minus 10% of Adjusted Total Income
  2. 25% of Adjusted Total Income
  3. Rs 5,000/month or Rs 60,000/year

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Conclusion

You can consult a financial expert to gain an understanding of tax-related issues, including what is Section 80GG and other provisions of the ITA. For instance, if you pay premiums in health insurance plan for yourself or your parents, you can avail of tax rebates under Section 80D. So, explore your options and file your ITR on time.

 

Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the topic featured in the article. It is advised to verify the currency and relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.

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