Form 10BA

Understand how Form 10BA can help you claim tax deduction on rent paid.
Form 10BA
3 min
29-February-2024

Form 10BA is crucial for renters seeking a tax deduction on their rent payments. Often, individuals who do not receive House Rent Allowance (HRA) from their employers, or self-employed person living on rent can benefit significantly from Form 10BA. By understanding its purpose and filing process, you can potentially reduce your tax burden.

What is Form 10BA?

Form 10BA is a declaration form mandated by the Income Tax Act, 1961, for individuals claiming a deduction under Section 80GG for rent paid. This section allows individuals who do not receive House Rent Allowance (HRA) from their employers or self-employed person living on rent to claim a deduction on the rent paid for their residential accommodation.

Let us understand this with an example

Vikas, a resident of Pune, works for a company that doesn't provide him with HRA. He pays a monthly rent of Rs. 5,000 for his rented apartment.

As Vikas doesn't receive HRA, he can claim a deduction under Section 80GG by filing Form 10BA.

Filing Form 10BA

A. Personal details:

  • Full name and PAN: Your full legal name and Permanent Account Number (PAN) are essential for identification purposes.

  • Address with postal code: Ensure you include your complete residential address along with the postal code.

B. Rental details:

  • Tenure of residency (in months): Indicate the total number of months you resided in the rented property during the specific financial year.

  • Rental amount: Specify the total amount of rent you paid for the entire financial year.

  • Mode of payment: Mention the method used to pay your rent, such as cash, cheque, or online transfer.

  • Address and name of the property owner: Provide the complete address and name of the individual or entity who owns the property.

C. Declaration and additional information:

  • Declaration: Include a formal statement declaring that neither you, your spouse, nor any minor under your care own any other residential property in India.

  • PAN of the property owner (if applicable): If your annual rent exceeds Rs. 1 lakh then you must provide the PAN of the property owner.

When to file Form 10BA?

Submitting Form 10BA is necessary when filing the income tax return. To ensure a successful deduction claim, it is crucial to file the form before the due date. During the filing process, it is essential to have all the necessary documents readily available for attaching to the form.

How to file Form 10BA online

  1. Visit the Income Tax Department website and log in using your user ID, password, and captcha
  2. Click on 'e-File' section and select 'Income Tax Forms'
  3. Search for and select Form 10BA
  4. Select the year for filing and click "Continue", then click "Let's Get Started"
  5. Enter rental property address, landlord information, rent details, and click save
  6. Click on the declaration, select the check box and click save
  7. Next, proceed to the e-verification section. Choose your preferred e-verification method and complete the process

Upon successful completion, Form 10BA will be submitted and e-verified.

Benefits of Form 10BA

  1. Filing Form 10BA allows you to claim a deduction on the rent paid for your residential accommodation under Section 80GG of the Income Tax Act, 1961. This deduction can significantly reduce your taxable income, thereby lowering your overall tax liability.
  2. Individuals who do not receive House Rent Allowance (HRA) from their employers can use this form to claim a tax benefit on rent paid.
  3. The Income Tax Department facilitates the e-filing of Form 10BA through their e-filing portal. This eliminates the need for physical submission and allows you to conveniently file the form from anywhere with an internet connection.

This deduction can help reduce your taxable income, thereby lowering your overall tax liability. The money you save on taxes could then be invested in options like Fixed Deposits (FDs) to grow your wealth. Bajaj Finance, one of the most trusted NBFCs, offers attractive interest rates of up to 8.85% p.a. on their Fixed Deposits. You can easily invest in their FDs by visiting their nearest branch or online through the Bajaj Finserv website or app.

Eligible amount of deduction

Lowest of the following will be considered as deduction under Section 80GG

  1. Rs. 5,000 per month (Rs. 60,000 a year)
  2. 25% of total income (excluding specified income and deductions)
  3. Actual rent paid minus 10% of total income

Conclusion

Understanding Form 10BA can simplify claiming a tax deduction for rent paid in India. This form helps renters who do not receive House Rent Allowance (HRA) from their employers. It is especially beneficial for self-employed individuals and those with lower incomes. By encouraging renters to file Form 10BA, the government promotes both responsible tax compliance and a healthy rental housing market.

Disclaimer

As regards deposit taking activity of Bajaj Finance Ltd (BFL), the viewers may refer to the advertisement in the Indian Express (Mumbai Edition) and Loksatta (Pune Edition) furnished in the application form for soliciting public deposits or refer https://www.bajajfinserv.in/fixed-deposit-archives
The company is having a valid Certificate of Registration dated March 5, 1998 issued by the Reserve Bank of India under section 45 IA of the Reserve Bank of India Act, 1934. However, the RBI does not accept any responsibility or guarantee about the present position as to the financial soundness of the company or for the correctness of any of the statements or representations made or opinions expressed by the company and for repayment of deposits/discharge of the liabilities by the company.

For the FD calculator the actual returns may vary slightly if the Fixed Deposit tenure includes a leap year.