Section 80GG → Section 136
Deductions in respect of rents paid
Quick Answer
Section 80GG of the Income Tax Act, 1961 (Deductions in respect of rents paid) corresponds to Section 136 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 80GG
Section 80GG of the 1961 Act sets out the rules on deductions in respect of rents paid. Deduction up to Rs. 5,000 per month for rent paid by self-employed persons or employees who do not receive HRA.
The new code maps this to Section 136: the provision is retained and renumbered as Section 136 of the Income-tax Act, 2025, applying from 1st April 2026. Moved to Section 136. Rent payment limits and calculation formula (least of 3 conditions) remains intact.
On the ground, changes to Section 80GG carry a Medium impact. Essential for gig workers and self-employed professionals living in rented houses.
Sec 80GG
Provision Summary
Deduction up to Rs. 5,000 per month for rent paid by self-employed persons or employees who do not receive HRA.
Sec 136
Provision Summary
Moved to Section 136. Rent payment limits and calculation formula (least of 3 conditions) remains intact.
Key Changes & Highlights
- Mandatory requirement to furnish landlord's PAN directly on the ITR form if rent exceeds Rs. 1 Lakh annually.
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Frequently Asked Questions
What does Section 80GG of the Income Tax Act 1961 deal with?
Section 80GG of the Income Tax Act, 1961 covers deductions in respect of rents paid. Deduction up to Rs. 5,000 per month for rent paid by self-employed persons or employees who do not receive HRA.
Where does Section 80GG of the ITA 1961 go under the Income-tax Act, 2025?
Section 80GG of the Income Tax Act, 1961 maps to Section 136 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Moved to Section 136. Rent payment limits and calculation formula (least of 3 conditions) remains intact.
Why does the change to Section 80GG matter for taxpayers?
The transition impact for Section 80GG is rated Medium. Essential for gig workers and self-employed professionals living in rented houses.
What are the key changes to Section 80GG under the Income-tax Act, 2025?
Mandatory requirement to furnish landlord's PAN directly on the ITR form if rent exceeds Rs. 1 Lakh annually. These points are specific to Section 80GG (Deductions in respect of rents paid).
Disclaimer: This mapping of Section 80GG (Deductions in respect of rents paid) to Section 136 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 80GG is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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