Claim Rent Deduction Without HRA, Avoid Defective ITR
- Rajesh Kumar Kar
- Jun 11
- 8 min read
Taxpayers who pay rent but do not receive House Rent Allowance (HRA) can still claim rent deduction under Section 80GG of the Income Tax Act, 1961. However, if not filed correctly, the Income Tax Return (ITR) may be marked defective under Section 139(9). This blog explains how to claim rent deduction without HRA, the correct filing process, and how to avoid a defective return.
If HRA is not part of your salary structure, you can claim a rent deduction under Section 80GG. This section benefits both salaried and self-employed individuals, provided certain conditions are met, including filing Form 10BA. To ensure the deduction is accepted and avoid Section 139(9) issues, it's crucial to follow the correct documentation and declaration process.
Table of Contents
How Much Can Be Claimed Under Section 80GG?
Limits and Formula The deduction amount under Section 80GG is the least of the following:
₹5,000 per month (₹60,000 annually)
25% of total income (excluding LTCG, STCG under Section 111A, and income under Sections 115A/115D)
Actual rent paid minus 10% of total income
Examples for Better Understanding Assume: Total income (excluding exempt categories): ₹6,00,000 Rent paid annually: ₹1,20,000
Calculation:
₹5,000 x 12 = ₹60,000
25% of ₹6,00,000 = ₹1,50,000
₹1,20,000 - 10% of ₹6,00,000 (₹60,000) = ₹60,000
The allowable deduction will be the least = ₹60,000.
Step-by-Step Guide to Claim Rent Deduction Under Section 80GG
File Form 10BA Accurately Filing Form 10BA is a mandatory requirement when claiming a rent deduction under Section 80GG. It is a self-declaration stating that the individual is paying rent and meets all conditions specified under the section.
Follow these steps to submit Form 10BA:
Log in to the Income Tax e-filing portal using your registered credentials (PAN and password).
Navigate to e-File > Income Tax Forms > File Income Tax Forms.
From the search bar, select Form 10BA.
Enter the required details:
Full address of the rented residential accommodation.
Name of the landlord and PAN of the landlord, if the rent paid exceeds ₹1,00,000 per annum.
Amount of rent paid during the financial year.
Confirmation that neither you, your spouse, nor your minor child owns any residential property in the city of residence.
Declaration that the property is used solely for residential purposes.
Submit the form after reviewing all entries. Make sure the submission is before or along with your ITR filing to avoid any compliance issues.
Maintain Rent Receipts and Agreement: Accurate documentation is critical to support your claim and avoid a defective return under Section 139(9).
Here's what you should keep ready:
Rent Agreement: A valid rental agreement with your landlord, ideally signed and dated, that outlines the monthly rent and lease terms.
Rent Receipts: Monthly or quarterly rent receipts acknowledging payment. These should ideally include:
Landlord's signature
Rent amount
Period covered
Date of payment
Proof of Payment: Always use traceable payment methods like bank transfers, UPI, IMPS, NEFT, or cheques. Avoid cash payments, especially if your rent exceeds ₹1 lakh annually.
Landlord’s PAN: If you pay more than ₹1,00,000 annually in rent, mentioning the PAN of your landlord in Form 10BA is mandatory. If unavailable, a written declaration from the landlord should be obtained, explaining the reason.
Claim in ITR With Proof Once you’ve filed Form 10BA and gathered the necessary documents, the next step is to declare the deduction in your ITR under Section 80GG.
Steps to claim it correctly:
While filling your ITR (either via the government portal or platforms like TaxBuddy), go to the ‘Deductions’ section under Chapter VI-A.
Locate Section 80GG and enter the correct deduction amount. This should be the least of the following:
₹5,000 per month (₹60,000 annually)
25% of your adjusted total income
Rent paid minus 10% of adjusted total income
Ensure that this amount matches your Form 10BA declaration.
Attach or retain the acknowledgment number or confirmation of Form 10BA submission. Although not physically uploaded with the ITR, it may be required later if the return is scrutinized.
Filing with accuracy and supporting documentation helps ensure that your claim is processed smoothly and avoids red flags like a defective return under Section 139(9). For a seamless experience, TaxBuddy offers a step-by-step guide and automated validations to make sure everything aligns before submission.
Avoiding Defective Returns Under Section 139(9)
Common Mistakes That Trigger a Defect Errors while claiming rent deduction without HRA can lead to your Income Tax Return being classified as defective under Section 139(9). Below are some of the most frequent reasons:
Failure to Submit Form 10BA: One of the most critical and overlooked steps. Taxpayers often forget or skip filing Form 10BA, which is a mandatory declaration when claiming deduction under Section 80GG. Without this form, the claim becomes invalid, and the return may be flagged as defective.
Incorrect Landlord or Property Details: Entering wrong details such as an incorrect PAN of the landlord (especially when rent exceeds ₹1 lakh annually), incomplete property address, or mismatching ownership information can raise red flags in backend verification and result in return rejection.
Lack of Supporting Documentation: Claiming the deduction without maintaining proper documents like rent receipts, rental agreements, or bank transaction proofs is a common mistake. These may not be submitted with the ITR but are essential in case of verification or scrutiny.
Claiming Section 80GG While Receiving HRA: Many salaried individuals mistakenly claim deduction under Section 80GG despite receiving HRA as part of their salary. Since both benefits cannot be availed simultaneously, this triggers a mismatch, leading to the return being flagged as defective or the deduction being disallowed.
How to Fix Errors in Filed ITR If your ITR has been marked as defective due to issues while claiming Section 80GG, here are the steps to correct it and ensure your return remains valid:
File a Revised Return Under Section 139(5): The first step is to revise your original return. This is only allowed if it was filed before the due date. While revising, ensure accurate details are provided, including deduction limits, and eligibility conditions are met. Mention the correct figures under Section 80GG and revalidate your ITR before submission.
Submit Form 10BA (If Missed Earlier): If Form 10BA was not filed with the original return, log in to the Income Tax e-filing portal and submit it immediately. Go to:e-file > Income Tax Forms > File Income Tax Forms > Select Form 10BA, fill in the required fields, and submit the form. This step is non-negotiable to retain your Section 80GG claim.
Respond Promptly to Defective Return Notice: If the Centralized Processing Centre (CPC) has already flagged your return as defective under Section 139(9), you must respond within 15 days from the date of intimation. Log into the e-filing portal, go to Pending Actions > E-Proceedings > Defective Returns, and select the appropriate response. Submit the corrected ITR or explanation as required.
Taking timely corrective action prevents rejection of your return and avoids delays in refund processing. Platforms like TaxBuddy offer expert review and automated error checks to ensure such mistakes are caught early and corrected efficiently.
Is Section 80GG Allowed in the New Tax Regime?
Old vs New Regime: Key Differences: Section 80GG deduction is allowed only in the old tax regime. The new tax regime does not allow most deductions, including Section 80GG.
Which Regime Should You Choose? Choose the old regime if eligible deductions under 80C, 80D, 80GG exceed tax savings. Use TaxBuddy's calculators to compare regimes based on actual income and deductions.
Common Mistakes to Avoid While Claiming Rent Deduction
Receiving HRA and Still Claiming 80GG: This results in rejection and possibly a defective return.
Not Filing Form 10BA: Mandatory for claiming Section 80GG. Skipping it can trigger Section 139(9) notice.
Claiming for Commercial Use or Without Documents: Rent deduction is valid only for self-residential use.
Absence of proof leads to disallowance.
Conclusion
Filing rent deduction under Section 80GG without HRA is possible—but only when every eligibility condition is met and Form 10BA is filed accurately. Failure to comply can result in defective returns and delays in processing. With TaxBuddy's app, taxpayers can confidently handle documentation, avoid common errors, and maximize their tax savings without the stress. For anyone looking for assistance in tax filing, it is highly recommended to download the TaxBuddy mobile app for a simplified, secure, and hassle-free experience.
Frequently Asked Question (FAQs)
Q1. Does TaxBuddy offer both self-filing and expert-assisted plans for ITR filing, or only expert-assisted options?
TaxBuddy provides flexible tax filing options. Users can either choose the self-filing plan with intelligent suggestions or opt for expert-assisted filing with end-to-end support. This ensures that every kind of taxpayer, whether experienced or first-time, has a solution tailored to their needs.
Q2. Which is the best site to file ITR?
While the Income Tax Department’s portal is the official platform, TaxBuddy is often preferred for its AI-driven tax filing features, real-time error checks, intuitive dashboards, and human support—all of which make it a strong choice for a seamless filing experience.
Q3. Where to file an income tax return?
Income tax returns can be filed directly on the government portal (incometax.gov.in) or through private platforms like TaxBuddy that offer simplified interfaces, automated deduction suggestions, and expert consultation features.
Q4. Can I claim both HRA and Section 80GG deduction?
No, taxpayers cannot claim both. If House Rent Allowance (HRA) is part of the salary and claimed as exempt, Section 80GG cannot be availed. Section 80GG is exclusively for those not receiving HRA.
Q5. What is Form 10BA and is it mandatory?
Form 10BA is a self-declaration confirming that the taxpayer:
Does not receive HRA,
Pays rent,
Does not own property in the city of residence,
Uses the rented property for personal accommodation. It is mandatory for claiming deduction under Section 80GG and must be submitted online through the e-filing portal.
Q6. What happens if I forget to file Form 10BA?
Failure to file Form 10BA while claiming 80GG may result in the Income Tax Department marking the return as defective under Section 139(9). This could lead to rejection of the rent deduction claim unless a revised return is filed with the correct documents.
Q7. Can self-employed individuals claim Section 80GG?
Yes, self-employed individuals who do not receive HRA and meet all eligibility conditions—such as not owning property in the city—can claim deduction under Section 80GG, provided they file Form 10BA and have valid rent documentation.
Q8. How does TaxBuddy help with Section 80GG claims?
TaxBuddy offers smart tools that automatically detect eligibility for Section 80GG, guide users through the Form 10BA filing process, and ensure that deduction limits and documentation requirements are fulfilled—reducing chances of errors or rejection.
Q9. Can I file Form 10BA after submitting ITR?
Technically, Form 10BA should be submitted before or at the time of filing ITR. However, if missed, one can submit Form 10BA and file a revised return under Section 139(5) before the deadline to correct the mistake.
Q10. Is the PAN of the landlord necessary for rent deduction?
Yes, if the total rent paid during the financial year exceeds ₹1 lakh, the landlord's PAN must be reported in Form 10BA. If the landlord refuses to share it, a declaration explaining the situation should be kept ready in case of future scrutiny.
Q11. What if I own property in a different city—can I still claim?
Owning a house in a different city does not disqualify you from claiming Section 80GG. The condition is that you, your spouse, or minor children should not own a residential property in the city where you live and claim the rent deduction.
Q12. What documents should I keep to support my 80GG claim?
You should retain the following:
Rent receipts signed by the landlord,
Rent agreement mentioning terms,
Proof of rent payment (bank statements, UPI records),
Form 10BA acknowledgment,
PAN of landlord (if rent exceeds ₹1 lakh annually). These documents may be requested during scrutiny or verification.
Related Posts
See AllTaxpayers in India have the opportunity to reduce their taxable income through various deductions available under the Income Tax Act....
For taxpayers who do not receive House Rent Allowance (HRA) , Section 80GG of the Income Tax Act offers a valuable opportunity to claim...
When it comes to filing taxes, understanding the various tax deductions available can significantly reduce your overall tax liability....
Comments