Even if you don’t get HRA, you can still save thousands of taxes! Know the special formula for tenants

House Rent Tax Benefit: Do you pay rent every month? If yes, then you can claim tax exemption for it while filing income tax return. Many taxpayers have the misconception that they can avail this exemption only if they get House Rent Allowance (HRA) from their employer. but it’s not like that. Even if HRA is not part of your salary, the Income Tax Act still allows you to claim exemption on rent payment subject to certain conditions.

Tax exemption is available under Section 134 of the Income Tax Act.

Tax experts say that taxpayers who do not get House Rent Allowance (HRA) can claim deduction on the rent paid under Section 134 of the Income Tax Act, 2025 (formerly Section 80GG of the Income Tax Act, 1961). This deduction is available to both salaried people and self-employed, provided they fulfill certain eligibility conditions.

What are the conditions for claiming tax deduction?

Tax experts say that to claim tax deduction on rent payment, the taxpayer should not have received House Rent Allowance (HRA) from his employer during the relevant financial year. Further, neither the taxpayer, nor his spouse, nor his minor children, nor the Hindu Undivided Family (HUF) of which the taxpayer is a member should own any residential property in the city where he ordinarily resides or works. Along with this claim, it is necessary to submit a declaration in the prescribed format (Form 10BA). If the form is not filled or the claim is made without the required supporting documents, the Income Tax Department may investigate the matter.

Neither you, nor your spouse, nor your minor children, nor the Hindu Undivided Family (HUF) of which you are a member, should own any house at the place where you ordinarily live or work. You will have to submit the prescribed declaration in Form 10BA.

Which documents should be kept?

Taxpayers should maintain rent receipts, a valid rental agreement, and proof of rent payment (such as bank transfer). If the annual rent is more than ₹ 1 lakh, then it is necessary to provide PAN of the landlord.

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