80EEA, 80EEB, 80E and 80GG Deduction – Important Notes

Last Updated onMay 16, 2025 2:55 pm

Assessees before filing their ITR must keep in mind that they can claim 80EEA, 80EEB, 80E and 80GG deduction as well. Have you claimed deductions u/s 80C and 80D and still have some investments or expenditures that you can claim further deductions on? Yes! There are some deductions available for interest on loan taken for education or house property. Moreover, even in respect of rent paid by individuals who are not receiving any HRA, deductions can be claimed. However, there are certain key points to remember regarding applicability, eligible amount and mandatory conditions for availing such deductions. Let us go through these sections that are often overlooked to ensure better tax savings!

Section 80GG Deduction and Eligibility

The benefit of this deduction can be availed by individuals (residents as well as non-residents) or HUF. Individuals in employment or self-employed, but are neither receiving house rent allowance (HRA) from their employers nor have been provided with any accommodation that is rent free for them by their employers are eligible for 80GG deduction. Therefore, if the salary of the employee includes the HRA component, then he will not be eligible for 80GG deduction.

People who live with their parents in a house owned by the parents can also take advantage of Section 80GG deduction benefits. To be eligible u/s 80GG, they must enter into a rental agreement with their parents. The amount paid as rent will be considered taxable income for the parents when they file their taxes.

Non-resident Indians (NRIs) can also claim tax benefits u/s 80GG, but they must be paying rent for a property situated in India to be eligible.

80 GG Deduction – Quantum allowed

80GG deduction can be allowed as the lower of the following:-

• Rs. 5,000 per month;
• 25% of the total income (excluding long-term capital gains, short-term capital gains under section 111A, and income under sections 115A or 115D) before allowing deduction u/s 80GG; or
• Excess of actual rent paid over 10% of total income before allowing deduction u/s 80GG.

Form 10BA for 80GG deduction

Form 10BA is a declaration required to claim deductions u/s 80GG for rent paid when HRA is not received. The details required in the form are as under:-

• Name of the assessee
• PAN of the assessee
• Complete address of the assessee
• Mode of payment
• Assessment Year
• Address of the rented property
• Name of the landlord
• PAN of the landlord, if the rent exceeds Rs. 1 lac annually
• Total amount paid for rent
• Declaration confirming that you do not own a residential property in the location where you reside, work, or conduct business.

80GG Deduction – Practical Example

Mr. A earns Rs. 5 lacs annually. He pays an annual rent of Rs. 1.20 lacs. He does not receive any HRA from his employer. What will be the amount of 80GG deduction that he can claim?

Total annual income = Rs. 5,00,000

Annual rent paid = Rs. 1,20,000

The deduction under Section 80GG will be the least of the above three amounts:

• Rs. 5,000 per month i.e. Rs. 60,000 annually
• 25% of total income i.e. Rs. 1,25,000
• Actual rent paid minus 10% of total income = Rs. 1,20,000 – Rs. 50,000 = Rs. 70,000.

Thus, the 80GG deduction amount will be Rs. 60,000 annually.

Section 80EEA – Deduction and Eligibility

Any individual, who has taken a loan from any financial institution for acquisition of a residential house property, can claim 80EEA deduction. This benefit is in addition to the Rs. 2 lakhs deduction u/s 24(b) for interest on home loans for self-occupied property. This has been added by Finance Act, 2019 to help first-time home buyers by allowing them to claim additional deduction on the interest component of the loans. Only individuals, who do not own any residential property, on the date of sanction of the home loan can avail deduction u/s 80EEA.

The maximum quantum of deduction u/s 80EEA is Rs. 1,50,000.

Section 80EEA – Conditions to be satisfied

The deduction u/s 80EEA on the interest component will be allowed only if all the following conditions are fulfilled:-

• The home loan has been sanctioned between April 1, 2019, and March 31, 2022;
• The stamp duty value of the residential house property does not exceed Rs. 45 lakhs;
• The loan must be taken from a financial institution or a housing finance company.

Section 80EEB – Deduction and Eligibility

Any individual, who has taken a loan from any financial institution for purchase of an electric vehicle, can claim deduction u/s 80EEB. The loan should have been sanctioned by the financial institution between April 1, 2019, and March 31, 2023.

The maximum allowable deduction u/s 80EEB is Rs. 1,50,000.

80E Deduction – Education Loan Interest

Section 80E deduction allows individuals to claim a deduction on the interest paid on education loans. Any individual, who has taken loan for either his or his relative’s higher education, can claim deduction on the interest component of such loan. Only the interest paid on the loan is eligible for the deduction, not the principal repayment.

There is no upper limit on the amount that can be claimed as a deduction. However, the deduction is available for a maximum of 8 years, starting from the year in which the repayment of interest begins, or until the interest is fully paid, whichever is earlier.

80E Deduction – Conditions to be fulfilled

The deduction u/s 80E on the interest component of the education loan will be allowed only if all the following conditions are fulfilled:-

• The loan must be taken for pursuing higher education, which includes any course of study after completing the senior secondary examination;
• The loan has been taken for the assessee, their spouse, children, or a student for whom the assessee is a legal guardian;
• The loan must be from a financial institution or a charitable institution approved by the Central Government.