What is Form 10BA of Income Tax Act? Form 10BA Filing Procedure, and Information required for filing Form 10BA

Introduction

The taxpayer must complete Form 10BA to claim the deduction for rent paid on rented property under section 80GG of the Income Tax Act. In this article information such as Form 10BA documents, Form 10BA filing Procedure, and “What is Form 10BA of Income Tax Act?” is mentioned.

What is Form 10BA of Income Tax Act?

Form 10BA is a statement kept by a taxpayer who needs to keep a tax deduction for rent paid on a rental property under Section 80GG. The following two requirements must be met in order to claim a deduction under Section 80GG:

• A taxpayer cannot be receiving House Rent Allowance (HRA) from an organisation.

• A taxpayer, his or her spouse, minor children, or if the assessee is a member of a HUF (Hindu Undivided Family), the HUF cannot own any self-occupied housing space.

If both of the requirements are met, the taxpayer can submit the statement in Form 10BA. Before submitting an income tax return, a taxpayer must present Form 10BA. Before moving further with Form 10BA of Income Tax Act, let’s have a quick glance at the Section 80GG under the Income Tax Act.

Section 80GG Meaning

Section 80GG of the Internal Revenue Code allows for deductions for house rent if certain circumstances are met. Being an individual or a Hindu Undivided Family (HUF), being self-employed or salaried, and so on are some of these.

House rent is one of the most essential tax deductions available to us. This is covered by the Income Tax Act’s Section 80GG. This is especially important for employees who do not receive HRA from their companies. Your wage, the city in which you are staying, the rent amount, and the HRA received all affect your tax exemption under Section 80GG.

Requirements to Keep the Rent Deduction Under Section 80GG of the Income Tax Act:

• Section 80GG allows only the self-governing person to claim a deduction.

• A person can work for themselves or for a company.

• A salaried individual should not be receiving House Rent Allowance (HRA) from their employer.

• Form 10BA must be presented to the IT Department in order to maintain a result.

• Assessee, spouse, minor children, or HUF of which he is a member must not have any living comfort at the location where he is residing/working under-employment/offering business or service.

• At no time should the assessee have a self-occupied dwelling property.

Information required for filing Form 10BA of Income Tax Act

The following information is required:

• Taxpayer PAN details,

• Taxpayer Name and Address of the rental property,

• Landlord name and address information,

• Paid Rent details.

Before filing an income tax return and claiming a deduction under section 80GG, you need to file Form 10BA.

Supporting Documents required for Income Tax Form 10BA filing 

Aside from basic documents like PAN and form 16 information, you will need to meet the following requirements:

• If the rent exceeds INR 1,00,000.

• Rent vouchers or Rent Agreement.

• PAN details of the owner are required.

• Form 10BA ensures that you are not claiming the benefit of a self-occupied residence in the same or different location.

Form 10BA Filing Procedure

The form must be submitted electronically through a taxpayer’s e-filing account on the IT (Income Tax) Department’s website.

• Go to the Income Tax e-Filing Portal by clicking “Login Here” on the Income Tax e-Filing Portal.

• Navigate to e-file and choose it from the drop-down menu. Forms for Income Tax.

• From the drop-down menu, choose Form 10BA and the appropriate Assessment Year.

• Click Continue after selecting Prepare and Submit Online as the submission mode.

• Enter information such as the landlord’s name, the amount of rent paid, and so on.

• Verify all the details in the form before submitting it.

• Once the verification and preview of the Form 10BA is completed, Click on the Submit button.

FAQs on Form 10BA of Income Tax Act

1. Can I claim a deduction under section 80GG and file Form 10BA as a freelancer who lives in rented premises?

You can submit Form 10BA. If neither you nor your spouse, minor child, or HUF (Hindu Undivided Family) possess any self-occupied residential property.

2. Who is required to file Form 10BA?

A taxpayer who needs to preserve a tax deduction under Section 80GG for rent paid on rental property should fill out Form 10BA.

3. Is it compulsory for all taxpayers to file Form 10BA of Income Tax Act?

The taxpayer must declare on Form 10BA that he or she rented a residence in the preceding year and that he or she does not have any other residence.

4. When am I eligible for an 80GG deduction?

When filing your ITR (Income Tax Return), you can claim a deduction under section 80GG. Form 10BA must be filed before the ITR.

Conclusion

HRA (House Rent Allowance) is usually included in a person’s salary and can be deducted. If you do not receive HRA from your employer and pay rent for unfurnished or furnished housing for your personal dwelling, you can claim a deduction under section 80GG by simply filing Form 10 BA.