Section 80GG Deduction Of Income Tax Act 2018-19

Section 80GG is for those employees who are not getting HRA from his/her employer under section 10(13A) of income tax.

Section 80GG deduction is mostly not known to many tax payers.

That is why they are unable to get deserving tax rebate under section 80GG.

Who is elligible to get benefit under 80GG SECTION

  • You should not have any house in the place where you do your job.
  • your salary must not include HRA.
  • You must file declaration in form 10BA.
  • where you are pursuing your business,you must reside in a rented house in that place.

How to calculate HRA u/s 80GG

first of all calculate HRA PAID-10% of ADJUSTED GROSS INCOME.

Here AGI (ADJUSTED GROSS INCOME) means your gross income -deductions from 80C to 80U,excluding 80GG.

Now calculate 12*5000=60000.

Finally calculate 25% of AGI(ADJUSTED GROSS INCOME).

Least of the following Amounts will be your tax rebate u/s 80GG:

  1. rent paid by you – 10% of AGI.
  2. RS 5000 PER MONTH That is 12*5000=60000
  3. 25% of AGI


Suppose your GROSS INCOME is rs 500000

and your tax deductions from 80c to 80u are 300000.

Hence your AGI=200000.

Now as per income tax act rs 60,000 at the rate of rs 5000 per month we must calculate.

Similarly 25% of AGI 20000=50000.

Finally least of rs 200000,rs 60000 and rs 50000 is rs 50,000.

Hence rs 50000 can be taken as tax rebate u/s 80GG.


Hence we can sum up that any tax payer can claim tax benefit under section 80GG if he/she is not hetting HRA exemption u/s 10(13A).

And his/her salary does not include any HRA.

SO while following the above conditions we can definitely take tax benefit under 80GG section.

Kuldeep Singh

is a professional blogger,teacher and income tax expert

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