What is Form 10BA for 80GG Deductions - Sinewave Computer Services Pvt Ltd

Section 80GG of the Income Tax Act, 1961, in India provides a deduction for individuals paying rent for house properties. This deduction is particularly available for those who do not receive House Rent Allowance (HRA) from their employer. Form 10BA is the declaration required to be submitted while claiming benefits under section 80GG.

In this article, we will discuss the requirements of form 10BA and its applicability.

Form 10BA:
An individual must file Form 10BA to get the deduction for the rent payment for rental property under section 80GG of the Income Tax Act, 1961. Form 10BA is a declaration that you have rented a house during the financial year and you don’t have any other property in your name.

Why is Form 10BA required?
Form 10BA is a mandatory requirement to claim deduction under section 80GG of the income tax act. You can reduce the taxable income after filing all the required details in form 10BA. It helps to save tax for the people who pay a rent and does not own a property of their own. Requirements to file form 10BA:

Mandatory compliance
Save taxes and no consequences of penalties or fees for non-filing
Authentic evidence of rent payment with government
Deduction under section 80GG cannot be claimed without filing of form 10BA and non-filing the same may result in receipt of income tax notice

Section 80GG:
As per section 80GG you can claim deduction from your taxable income on the rent payments where you don’t posses any property in your own name. This deduction is allowed to employed as well as self-employed taxpayers. If the taxpayer, their minor child, spouse, or the assessee is a member of a HUF (Hindu Undivided Family), then the HUF must not possess any self-occupied residential property.

This deduction is available only when you do not receive any HRA as a part of your salary. The amount of deduction under section 80GG is:

Rs.5000 per month or Rs.60,000 yearly
25% of the adjusted total income of the individual (excluding short-term capital gains under Section 111A, long-term capital gains, Income under Section 115A or 115D, and deductions under Sections 80C to 80U)
Actual rent paid – 10% of adjusted total income

Procedure to file Form 10BA online:

Taxbase provides you with an option to fill data in form 10BA automatically when you have entered all your details in the profile. You will have select forms option and then out of the displayed option, choose form 10BA and it enter all your data in the form.

To submit the form online on the income tax portal, you have to follow these steps:

Enter Form 10BA in the search box. Click on the ‘File now’ button to proceed.

Select the assessment year, continue and fill in the required details.

Provide rental details and landlord details etc.

This is followed with a Aadhar e-verification process. After e-verification is done form 10BA is submitted. An acknowledgement is generated after the successful submission of Form 10BA.

Conclusion:
Form 10BA of the Income Tax Act should be filed before the income tax return. It is a self-declaration for claiming deduction under section 80GG. The form is to be filed for claiming the deduction u/s 80GG when benefit of HRA exemption is not given to employee. This can be claimed by employed or self-employed individual as well who or some of his family members does not own any residential property.

About Author:
CA Chinmay Shirish Agate
Chinmay Agate is a Practicing Chartered Accountant having 4+ years of experience and expertise in the field of Direct Taxation and Auditing compliances. In the past, he worked in various CA firms and comes with wide industry experience from services, retail to manufacturing to trading where he has handled various complex assignments. He has keen interest in Forex and Derivative knowledge as well as fundamental analysis.