Missed 80GG? Let TaxBuddy Help You File a Revised Return
- Rashmita Choudhary
- Sep 19
- 10 min read
Section 80GG of the Income Tax Act provides a crucial deduction for individuals paying rent who do not receive House Rent Allowance (HRA) from their employer. Missing this deduction during the original filing can reduce potential tax savings, but a revised return under Section 139(5) allows taxpayers to correct this oversight. TaxBuddy offers a streamlined solution to file such revised returns accurately, ensuring that all missed deductions, including 80GG, are claimed. With step-by-step guidance, automated compliance checks, and both self-filing and expert-assisted options, TaxBuddy simplifies the revision process and helps taxpayers maximize their benefits while staying fully compliant.
Table of Contents
What is Section 80GG?
Section 80GG of the Income Tax Act provides a deduction on house rent paid by an individual who does not receive House Rent Allowance (HRA) from their employer. This deduction is designed to support taxpayers who live in rented accommodations but are not eligible for HRA benefits under their salary structure. The deduction is available to both salaried individuals and self-employed professionals. Taxpayers can claim the deduction for rent paid during the financial year, subject to certain conditions and limits, which helps in reducing the overall taxable income and the tax liability.
Eligibility Criteria for Section 80GG Deduction
Section 80GG of the Income Tax Act provides relief to individuals who do not receive House Rent Allowance (HRA) from their employer but still incur rental expenses for residential accommodation. To claim this deduction, taxpayers must meet certain eligibility conditions to ensure their claim is valid and compliant with the Income Tax Department’s regulations.
Firstly, the taxpayer should not be receiving any HRA from their employer. This condition ensures that the deduction under Section 80GG is available only to those who are bearing the rental expense entirely out of their own income.
Secondly, the individual, or their spouse or minor child, should not own a residential property at the place where they are employed or carry on business. If the taxpayer or their immediate family members own a house at the location of employment, the deduction cannot be claimed, as it is assumed that no rental expense is incurred in such a case.
Thirdly, the taxpayer must have actually paid rent for a residential property they occupy. This condition is essential because the deduction is intended to provide relief for genuine rental payments and cannot be claimed without evidence of rent paid.
Finally, the taxpayer is required to file Form 10BA along with their Income Tax Return as proof of rent paid. This form contains details of the rent, landlord information, and confirmation that the conditions of Section 80GG are satisfied. Proper submission of Form 10BA ensures the claim is processed smoothly and reduces the likelihood of rejection or scrutiny by the Income Tax Department.
Meeting all these eligibility criteria is crucial for successfully claiming the Section 80GG deduction and maximizing tax benefits while remaining fully compliant with the law.
How to Calculate Section 80GG Benefits
The deduction under Section 80GG is calculated as the least of the following three amounts:
₹5,000 per month (i.e., ₹60,000 per year)
25% of total income (excluding capital gains)
Rent paid minus 10% of total income
For example, if a taxpayer pays ₹12,000 per month in rent and has a total income of ₹6,00,000 (excluding capital gains), the deduction will be computed as follows:
₹5,000 × 12 = ₹60,000
25% of ₹6,00,000 = ₹1,50,000
Rent paid (₹1,44,000) − 10% of ₹6,00,000 (₹60,000) = ₹84,000
Here, the least value is ₹60,000, which can be claimed as a deduction.
Is Section 80GG Allowed in the New Tax Regime?
No, under the New Tax Regime, Section 80GG deductions are not available. The new regime offers lower tax rates but removes most deductions and exemptions, including HRA and Section 80GG. Taxpayers opting for the new tax regime will not be able to claim this deduction and must plan their tax liability accordingly.
How Section 80GG Works in the Old Tax Regime
In the Old Tax Regime, Section 80GG provides the full deduction as calculated above. Taxpayers can reduce their taxable income by claiming the deduction while filing ITR. It is particularly beneficial for self-employed individuals or salaried employees without HRA, as it reduces the overall tax burden and ensures compliance. Proper documentation, including Form 10BA, is essential for claiming the deduction.
Missed Section 80GG Claim? Filing a Revised Return
If a taxpayer realizes that they missed claiming Section 80GG in their original ITR, they can file a revised return under Section 139(5) within the allowed time frame. Filing a revised return ensures that the taxpayer avails the tax benefit without facing penalties, provided the revision is made within the specified period by the Income Tax Department.
How to File a Revised Return Under Section 139(5)
Filing a revised return under Section 139(5) allows taxpayers to correct mistakes, include missed deductions, or update income details in a previously filed Income Tax Return (ITR). For example, if you initially missed claiming deductions under Section 80GG, the revised return ensures that this deduction is considered in your tax computation.
The process begins by logging into the Income Tax e-filing portal using your PAN and registered credentials. Once logged in, select the relevant assessment year for which you wish to revise the return. The portal provides a clear option to file a revised return under Section 139(5). After selecting this option, you need to carefully update the ITR form to reflect any changes or additional deductions, such as Section 80GG, and upload all supporting documents, including rent receipts or declarations required for claiming this deduction.
Once the revisions are complete, the return must be submitted on the portal. To validate your submission, e-verification is mandatory. This can be done using methods such as Aadhaar OTP, net banking, electronic verification code (EVC) via bank account, or a digital signature certificate (DSC). Successful verification confirms that the revised information has been received by the Income Tax Department, ensuring that the missed deductions or corrections are processed accurately.
By following this structured process, taxpayers can avoid underreporting, ensure accurate tax liability calculation, and receive any eligible refunds without delays.
How TaxBuddy Assists in Filing Revised Returns
TaxBuddy simplifies the revised return filing process by guiding taxpayers step-by-step. It ensures that all eligible deductions, including Section 80GG, are captured accurately. TaxBuddy offers both self-filing and expert-assisted plans, helping users avoid common mistakes, upload necessary documents, and e-verify their revised returns securely. This reduces the risk of errors and speeds up refund processing.
Key Documents Required for 80GG Deduction
To claim the deduction under Section 80GG of the Income Tax Act, it is important to maintain and submit specific documents that validate your rent payments and eligibility. The first essential document is the rent receipts for the entire financial year. These receipts must clearly mention the amount of rent paid, the period for which rent was paid, and the landlord's details. Maintaining accurate and complete rent receipts helps substantiate your claim and ensures that the Income Tax Department has a clear record of your rental payments.
Another mandatory document is Form 10BA, which is a declaration by the taxpayer stating that they do not receive House Rent Allowance (HRA) from their employer and that they are paying rent for accommodation. Form 10BA should be signed and submitted along with the ITR to confirm compliance with Section 80GG conditions.
If the annual rent paid exceeds ₹1,00,000, it is also necessary to provide the PAN details of the landlord. This allows the tax authorities to verify the transaction and ensures transparency in reporting.
Additionally, proof of your residential address may be required, which can include utility bills, lease agreements, or official correspondence. Providing these documents confirms that the rent paid relates to an actual residence and strengthens the legitimacy of your deduction claim.
Having all these documents prepared and organized in advance not only facilitates smooth processing of your Section 80GG deduction but also minimizes the likelihood of notices or queries from the Income Tax Department, making the filing process hassle-free and efficient.
Common Mistakes to Avoid While Claiming 80GG
Claiming a deduction under Section 80GG can provide significant tax relief to individuals who do not receive House Rent Allowance (HRA) from their employer. However, taxpayers often make mistakes that can result in reduced benefits or even notices from the Income Tax Department. One common error is claiming 80GG while simultaneously receiving HRA. Taxpayers cannot claim a deduction under 80GG if they are already availing HRA, as both are meant to address rent payments but under different circumstances.
Another frequent mistake is filing the claim without submitting Form 10BA. This form is a declaration of rent paid, and without it, the claim for deduction under 80GG may be rejected during ITR processing.
Incorrect calculation of the maximum deduction limit is also a recurring issue. Section 80GG provides a deduction subject to certain limits, and miscalculating the allowable amount can lead to discrepancies in tax computation. Similarly, not reporting actual rental payments correctly in the ITR can create mismatches, potentially resulting in notices or reduced deductions.
Finally, taxpayers sometimes forget to file a revised return if the claim for 80GG was missed in the original ITR. Filing a revised return ensures that eligible deductions are captured and refunds, if any, are processed correctly.
Being mindful of these common mistakes helps ensure smooth processing of the ITR and maximizes the available tax benefits under Section 80GG.
Benefits of Using TaxBuddy for Revised Return Filing
Filing a revised return can be a daunting task, especially when it involves multiple income sources, deductions, and previous filing errors. TaxBuddy simplifies this process by offering a comprehensive platform designed to make revised return filing efficient, accurate, and stress-free. One of the primary advantages of using TaxBuddy is the step-by-step guidance it provides for claiming deductions. Taxpayers can easily navigate through applicable sections, such as Section 80GG for house rent or other eligible deductions, without worrying about missing any entitlements.
Another significant benefit is the automated error detection feature. The platform scans the revised return for potential mistakes, inconsistencies, or missing information, reducing the chances of rejection by the Income Tax Department. For more complex cases, such as multiple income sources or adjustments in capital gains, TaxBuddy offers expert assistance. Professional guidance ensures that the revised return is filed correctly and in compliance with the latest tax regulations.
In addition to guidance and error prevention, TaxBuddy provides secure e-verification and submission, ensuring the revised return is filed safely and confidentially. The platform also supports faster processing of refunds by streamlining the filing process and avoiding common delays associated with manual submissions. Overall, TaxBuddy makes claiming deductions and filing revised returns a hassle-free experience, even for first-time filers.
Conclusion
Section 80GG offers a valuable tax deduction for taxpayers without HRA, helping reduce taxable income. Filing a revised return ensures that missed claims are corrected and refunds are processed efficiently. Platforms like TaxBuddy make this process simple, secure, and accurate. 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.
FAQs
Q1. Does TaxBuddy offer both self-filing and expert-assisted plans for ITR filing, or only expert-assisted options? TaxBuddy provides both self-filing (DIY) and expert-assisted plans. The self-filing option is ideal for taxpayers comfortable navigating the ITR filing process themselves, offering guided prompts, automated checks, and easy form uploads. Expert-assisted plans connect users with qualified tax professionals who review, verify, and file the return on the user’s behalf, ensuring accuracy and compliance with the latest tax rules.
Q2. Which is the best site to file ITR? TaxBuddy is considered one of the best platforms for ITR filing due to its user-friendly interface, AI-driven automation, secure data handling, and flexible plans. It supports multiple income sources, auto-calculates deductions, ensures accurate form selection, and helps users avoid errors that could lead to notices from the Income Tax Department.
Q3. Where to file an income tax return? Income tax returns can be filed through the official Income Tax Department e-filing portal or via authorized platforms like TaxBuddy. TaxBuddy allows filing from any device with an internet connection, offering guided workflows and real-time validation to minimize errors.
Q4. Can I claim Section 80GG if I receive HRA partially? Yes. Section 80GG can be claimed for rent paid if you do not receive HRA or if your HRA is insufficient to cover your rent. Taxable HRA received from the employer will reduce the deduction allowed under Section 80GG proportionally.
Q5. Is Form 10BA mandatory for claiming Section 80GG? Yes. Form 10BA must be submitted to claim a deduction under Section 80GG. It is a declaration form stating that the taxpayer does not receive HRA and pays rent for residential accommodation. This form is required by the Income Tax Department for validation.
Q6. Can self-employed professionals claim Section 80GG? Yes. Self-employed individuals who do not receive HRA from any employer and pay rent for their residence are eligible to claim Section 80GG. They must submit Form 10BA along with their ITR to claim the deduction.
Q7. What is the maximum deduction allowed under Section 80GG? The maximum deduction under Section 80GG is the least of the following three:
₹5,000 per month (₹60,000 per year)
25% of total income (excluding capital gains)
Actual rent paid minus 10% of total income This ensures that the deduction is proportionate to the taxpayer’s rent and income.
Q8. Can Section 80GG be claimed in the new tax regime? No. Section 80GG is not allowed under the new tax regime. Taxpayers opting for the new regime cannot claim this deduction. Only those filing under the old tax regime can utilize this benefit.
Q9. What happens if I file the 80GG claim in the wrong ITR form? Filing Section 80GG in an incorrect ITR form may lead to rejection or mismatched claims by the Income Tax Department. For salaried or self-employed individuals without HRA, ITR-1 or ITR-4 may be applicable, but the form must be selected based on total income sources. Using TaxBuddy ensures the correct form is automatically selected.
Q10. How long can I file a revised return to claim 80GG? A revised return can be filed under Section 139(5) within one year from the end of the assessment year or before the completion of the assessment, whichever is earlier. For FY 2024-25, this means a revised return can typically be filed until March 31, 2026, if the original ITR was already submitted.
Q11. Can TaxBuddy assist in calculating Section 80GG deduction automatically? Yes. TaxBuddy’s platform automatically calculates the eligible Section 80GG deduction based on the rent paid, income, and HRA received (if any). Users simply need to enter relevant details, and the system applies the correct limits and generates a pre-verified claim in the ITR.
Q12. Are rent receipts required for the entire financial year to claim 80GG? Yes. Taxpayers should maintain rent receipts covering the full financial year for which the deduction is claimed. These receipts act as supporting documents in case of verification by the Income Tax Department. TaxBuddy allows uploading these receipts digitally for record-keeping and easy filing.
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