Form 10BA: claim deduction under section 80GG
Form 10BA is a declaration to be filed by a taxpayer who wants to claim deduction under section 80GG for rent paid on rental property. In order to claim deduction u/s 80GG following two conditions should be satisfied:
- The taxpayer should not be receiving HRA (House Rent Allowance) from an employer AND,
- The taxpayer, his spouse, minor child or if the assessee is a member of HUF, then the HUF should not own any self-occupied residential accommodation.
If both the above conditions are satisfied, then the taxpayer can submit a declaration in Form 10BA. A taxpayer should submit Form 10BA before filing ITR.
Other important ITR documents include: Form 16, Form 26AS, Form 12BB, Form 15G & Form 15H.
Let’s take an example to understand it better:
During FY 2018-19, Arun was employed for the first 6 months and after that, he started doing freelancing work. Arun stayed at rented premises during the entire year. During his employment he received HRA. He does not own any self-occupied house property.
In the above scenario, Arun is eligible to claim deduction under section 80GG and can file Form 10BA for the last 6 months rent paid by him. Since he was not receiving any HRA during that time and he did not own any self-occupied property.
How to submit Form-10BA?
Assessee has to submit Form 10BA online from his/her e-filing account on IT Department website.
A step-by-step guide to file Form 10BA:
Step 1: Log in to e-filing account on IT Department website.
Step 2: Navigate to e-file > Income Tax Forms
Step 3: Select FORM NO. 10BA from the drop-down, select the relevant Assessment Year, select Submission Mode as Prepare and Submit Online and click Continue.
Step 4: Enter the details, preview and submit
What are the details required in Form 10BA?
Form 10BA contains following details:
- Taxpayer’s Name and PAN,
- Address of rental property,
- Rent paid,
- Name and Address of Landlord.
It is advisable to submit Form 10BA before filing income tax return and claiming deduction under section 80GG.
1. Can I claim a deduction on rent paid if HRA forms part of my salary?
No. As per primary conditions, you can not claim a deduction on rent paid if you receive HRA from your employer. In this case, only HRA is allowed as deduction.
2. I am a freelance and I stay in rented premises, can I claim a deduction under section 80GG and file Form 10BA?
Yes, you can file Form 10BA. Provided you, your spouse, a minor child or your HUF does not own any self-occupied residential accommodation.