InvestorQ : I am a salaried employee, and I live in a rented house but does not receive any HRA, is there any tax benefit on the rent paid?
leah Diaz made post

I am a salaried employee, and I live in a rented house but does not receive any HRA, is there any tax benefit on the rent paid?

Answer
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krithika Saxena answered.
1 year ago


Yes, you’re eligible for deduction if you’re staying in rented accommodation. If you’re a salaried employee receiving HRA (House Rent Allowance), a part of this amount is exempt under section 10(13A) of the Income Tax Act. The amount of deduction is based on the city assessor is residing in.

Salaries employees residing in rented accommodation but do not receive any House Rent Allowance from their employer, can claim deduction under section 80GG. This section is applicable to self-employed individuals too. The least of the following is available as a deduction under this section.

  • Rent paid in excess of 10% of total income
  • 25% of the total income
  • Rs 5000 per month,
Provided the following conditions are satisfied:
  1. An employee is salaried or self-employed.
  2. No HRA has been received during the year.
  3. You, spouse, a minor child does not own any residential property at the place you’re residing.
In case any residential property is owned, and income is calculated under House Property no deduction under this section is allowed.


user profile image
1 year ago


You can claim deduction under Section 80GG up to Rs.60,000 per year for rent paid, in case you dont receive HRA.