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How to file the Form 10BA of Income Tax?

Navdisha Sehgal

| Updated: Apr 16, 2021 | Category: Income Tax

Form 10BA of Income Tax

Form 10BA is a declaration filed by the taxpayer to claim the deduction under section 80GG of the Income Tax Act for the rent paid on rental property.

This article focuses on how to file form 10BA before claiming deduction under Section 80GG.

What is Form 10BA?

Form 10BA is a statement documented by the taxpayer who needs to claim a deduction under Section 80GG for the rent paid on the rental property. The taxpayers have to satisfy two requirements to claim deduction under Section 80GG.

The requirements are:

  • The taxpayer must not receive House Rent Allowance (HRA) from an organization; and
  • The HUF should not hold any self- occupied living accommodation; in case of the taxpayer, the spouse, or the minor children, or if the assesse is a part of HUF (Hindu Undivided Family.)

If both of the above mentioned requirements are fulfilled, a taxpayer can present the statement in Form 10BA, and the form must be filed before filing the income tax return.

Section 80GG of the Income Tax Act, 1961 talks about the deduction for the rent paid on the rental property, whether furnished or unfurnished. The taxpayer must not receive any HRA (House Rent Allowance) from their organization. The condition mentioned above is a must for a taxpayer to claim deduction under the section.

What are the conditions for a deduction under Section 80GG?

The following are the conditions to claim deduction under section 80GG:

  • A self – governing person can only claim deduction under the section.
  • A person claiming deduction can be either salaried or self – employed.
  • The person must not receive HRA (House Rent Allowance) from their organization, in the case of a salaried person.
  • Form 10BA must be presented to the Income Tax Department[1].
  • The assesse must not have a self – occupied property like a home at any position.
  • The spouse, minor children, or the assesse of the taxpayer, a member of HUF, should not have a comfortable living space, where he is living or working under the employment or offering business or service.

Example

Let us understand this concept through an example.

A person employed for the initial six months, and after, he started working as a freelancer. He stayed at a rented property for the whole year and took an HRA, and he does not have any self – owned property.

He can claim deduction under section 80GG and files Form 10BA for the last 6 months rent paid by him in the present case.

What is the purpose of deduction under Section 80GG and filing Form 10BA?

For an FY 2018- 19 or AY 2019 -20, the deduction under the section must be at least:

  • The complete rent paid which is less than the 10% of whole income;
  • 25% of the yearly payroll; and
  • Rs. 5000 monthly (that means it is Rs. 60,000 yearly).

Here is a list of requirements to be fulfilled to claim a deduction.

  • The assesse must not have a self – occupied property like a home at any position.
  • A self – governing person can only claim deduction under the section.
  • The person must not receive HRA (House Rent Allowance) from their organization in the case of a salaried person.
  • A person claiming deduction can be either salaried or self – employed.
  • The spouse, minor children, or the assesse of the taxpayer, a member of HUF, should not have a comfortable living space, where he is living or working under the employment or offering business or service.
  • Form 10BA must be presented to the Income Tax Department.

List of ITR Form applicable under Section 80GG

The list of applicable ITR Forms under section 80GG are:

  • ITR 1
  • ITR 2
  • ITR 3
  • ITR 4

The expected date of filing an ITR is 31st July of the next FY.

What are the documents required to file Form 10BA?

Apart from the documents including Form 16 & the PAN details, the documents required to file form are:

  • Rent agreement & rent vouchers;
  • PAN details of the landlord, in case the value of rent exceeds Rs. 1 lakhs.

Form 10BA is filed because it ensures that the landlord is not declaring the benefit of self-occupied home in the same or any other place.

How to file Form 10BA?

From 10BA needs to be filed online through the e – Filing portal:

The steps to fill the form are:

  • Visit Income Tax e – Filing Portal and login via credentials.
  • Navigate to the e – file option and select Income Tax Forms.
  • Select Form 10BA from the drop – down menu and then select the relevant Assessment Year.
  • Select the submission mode as prepare and submit it online.
  • Then click on continue.
  • Enter all the details that include the landlord’s name, the details of how much the rent is paid, the address of the rented property, etc.
  • Preview the form and then submit it.

What are the details required in Form 10BA?

The following details are required in Form 10BA:

  • Name of the taxpayer
  • PAN details
  • Rental property address
  • Rent paid
  • Landlord’s name & address.

Conclusion

Form 10BA is a statement that should be filed on the Income Tax website under the e – filing portal. The form is filed to claim deductions under Section 80GG of the Income Tax Act.

Thus, it is preferable to file Form 10BA before filing an ITR & claiming deduction from rent under Section 80GG.

Read our article:All about Section 12 of Income Tax Act, 1961

Navdisha Sehgal

Completed BA LLB from JEMTEC, School of Law, Greater Noida (Affiliated to GGSIP University, New Delhi). I have an experience of about 2 years in various fields of corporate laws, but I have a keen interest in researching on legal issues and to gain knowledge. I always strive to bring the best to work on what I do.

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