FORM 10BA: DEDUCTIONS CLAIMED UNDER SECTION 80GG
What is Form 10BA?
Form 10BA is a statement to be recorded by a taxpayer who needs to maintain a tax deduction under Section 80GG for rent, settled on rental property. To claim the deduction under section 80RRB the following prerequisites have to be fulfilled:
- The taxpayer should not be getting House Rent Allowance from the respective employer
- The taxpayer’s spouse and minor children, or if the assessee is a part of HUF (Hindu Undivided Family), then the HUF should not hold any self-occupied living accommodation.
If the above requirements are met, then the taxpayer can present a statement in Form 10BA. It is imperative that a taxpayer should present Form 10BA before filing ITR.
PURPOSE OF FORM 10BA:
For the purpose of reporting deductions under Section 80GG of the Income Tax Act, Form 10BA is a tax form used in India. If the person does not own a home or if the home is not accessible for his use, this clause permits deductions on rent paid for residential accommodations. The document must be filed with the person’s income tax return.
Specifications Needed for Tax Form 10BA
The information needed for Form 10BA includes:
- The person’s name and Permanent Account Number (PAN).
- Information about the specific costs that are being claimed as deductions (such as rent paid for a self-occupied property or home loan interest)
- The sum of the requested deductions
- A record of the costs (such as rent receipts or home loan statements)
- A declaration that the requirements outlined in the applicable provision of the Income Tax Act have indeed been satisfied.
Prerequisite Documents for Claiming Deduction Under Section 80GG:
- Rental agreement and rent receipts
- If the rental amount exceeds ₹ 10,000, PAN details of the owner of the residential property
- Form 10BA to show that the taxpayer has no self-occupied residence in the same or a different location.
Amount Eligible for Deduction Under Section 80GG:
The lowest of the amount stated below will be considered when a deduction is claimed under Section 80GG:
- ₹5,000 on a monthly basis
- 25% of the income in total (Not including the long-term and short-term capital gains, Also the income referred to here, is the one the taxpayer has in hand before the deduction is made under Section 80GG)
- The actual rent, when it is less than 10% of the income.
How Can I Submit Form 10BA online?
- Go to the Income Tax e-filling Portal and sign in with your User ID, PAN, or TAN and password to access your account.
- Go to e-file > Income Tax Forms on the dashboard. submitting tax forms Click “File Now”
- After doing a search for Form 10BA under the heading “Person not reliant on any Source of Income.”
- On the following screen, click “Let’s Get Started” after selecting the pertinent evaluation year and clicking “Continue”.
- Give specifics for each choice.
- Please choose House Property Details.
- Enter the necessary information, such as the address of the rental property, the landlord’s name and address, the amount of rent that was paid, etc., and click Save.
- Next, choose Declaration. tick the box, then click “Save”
Details to be Filled in Form 10BA:
The following information is to be provided while filing the form 10BA:
- Name and PAN details of the taxpayer
- Address of the rental property
- Total Rent Paid
- Name and Address of the Landlord.
