All You Need to Know About Form 10BA of the Income Tax Act

Do you know that, using Form 10BA, under section 80GG, you can claim house rent deduction? For this, both Indian residents and non-Indian residents (NRIs) are eligible to claim; however, they need to fulfill some conditions. It includes not receiving House Rent Allowances (HRA) from your employer. Through this, you can reduce your taxable income and overall tax liabilities. Want to know how you can do so and claim tax benefits using the Form 10BA of the Income Tax Act? Then you are on the right page. Read on the blog and get your answers.

What Is Form 10BA of the Income Tax Act?

Form 10BA of the Income Tax Act 1961 is a statement used by taxpayers, whether Indian residents or NRIs in India, to specify the paid rent amount and the deducted tax on that under section 80GG. It is for people who do not have any specific house property but want to claim tax deductions on paid rent for residential accommodations. This tax benefit is generally available for self-employed individuals and salaried employees who do not receive HRA from their employer.

This was all about Form 10BA of the Income Tax Act. Moving ahead, let's know the conditions to file Form 10BA.

Conditions to File Form 10BA

As stated above, to file Form 10BA and claim the rental tax benefits under section 80GG, individuals need to fulfill specific conditions. These conditions apply to both self-employed and salaried individuals who do not receive HRA. Here, for both Indian residents and NRIs, the conditions are different for filing Form 10BA. Moving further, let's know about each of them.

For Indian Residents

Indian residents can fill out Form 10BA and claim rental tax benefits under section 80GG of the Income Tax Act, but they need to fulfill the following conditions:

• You do not have residential property where you stay or work. In addition, you do not have property in any other location that is self-occupied by you.
• You pay rent for living in your own house.
• Your employer is not providing your HRA.
• You are living in a rental house and have taxable income in India.
• If you are a spouse, a minor child, or a member of a Hindu Undivided Family (HUF), then you should not have any self-occupied residential property.

For Non-Indian Residents

Here are the following conditions that NRIs need to fulfill to fill out Form 10 BA and claim rental tax benefits under section 80GG of the Income Tax Act in India:

• They are living in a rental property in India and do not have their own house in the country.
• Have taxable income in India, whether it is from salary or business.
• Whenever they visit India, they live in a rented property.
• Apart from these, they also meet the other conditions mentioned in section 80GG.

This was all about the conditions both Indian residents and NRIs need to fulfill to fill out Form 10BA of the Income Tax Act. However, it does not apply to the rent paid outside India or to passive income, such as rent, interest, received in India. Moving ahead, let's know why it is essential to fill out this form.

Is Form 10BA Mandatory to File?

Yes, it is mandatory to file Form 10BA if you want to claim rent deduction under section 80GG of the Income Tax Act before filing the income tax return (ITR). Mentioned below is the list of reasons before filling ITR why it is essential to fill Form 10BA:

• Under section 80GG of the Income Tax Act, it is mandatory to fill out Form 10BA to claim a rental tax deduction.
• This form serves as evidence to approve your rental tax deduction claims.
• Form 10BA works as a certifiable record of your rental payments.
• Filling out this form provides you with less taxable income, helping in tax savings, specifically, if a certain amount of your income goes toward paying rent.
• Serves as proof of tax compliance that is beneficial during loan approvals, visa applications, or background checks.
• In case of an income tax audit, Form 10BA, along with all the essential documents, helps in tax deductions.

These are the key reasons why it is essential to file Form 10BA before filing ITR. Moving forward, let's know the tax deduction limit applicable under this form.

What Is the Form 10BA Limit for Deduction?

Under section 80GG of the Income Tax Act, the Form 10BA limit for claiming tax benefit for paid rent in India is as follows:

• INR 5,000 per month or INR 60,000 annual
• Actual rent (-) 10% of total income
• 25% of the total income (excluding under section 111A short-term capital gains, under section 115A or 115D long-term capital gains, income, and tax deductions mentioned under sections 80C to 80U).

These are the tax deduction limits you can claim through Form 10BA for your paid rent in India. Among them, whose ever amount will be low will be deducted. Moving ahead, now let's know the due date to fill out this form.

Form 10BA Due Date

Before submitting your income tax return, you must fill out Form 10BA of the Income Tax Act. The due date of both Form 10BA and ITR is the same. Confused, let's understand it with an example. For instance, for the fiscal year 2023-24, the due date to fill out Form 10BA is July 31, 2024. In case your accounts need an audit, you need to fill out this form by September 30, 2024.

This was all about the due date of filing out Form 10BA. Moving ahead, let's know the information needed while filling out this form.

Information Required to File Form 10BA

Here is the following information required to fill in the Form 10BA:

• Personal Information of the Individual
  • Your full name
  • PAN card number
  • Address
  • Details of your business or employment
• Details of Paid Rent, Name of landlord, PAN, and Address
  • Monthly amount of rent
  • Payment mode for rent
  • Name and complete address of landlord
  • PAN card number of landlord (if the rent amount is INR 1,00,000)

These are the details that are generally needed while filing out Form 10BA of the Income Tax Act. Moving further, let's know how you can fill this form online.

How to File Form 10BA Online?

To fill out Form 10BA online, follow the steps mentioned below:

• Step 1: Visit the official income tax site and, using your credentials, log in to the e-filing portal.
• Step 2: From the dashboard, click on 'e-file'> 'Income tax form'> 'file income tax form'.
• Step 3: Now, to choose Form 10BA, scroll down. Additionally, in the search box, you can also mention Form 10BA. To proceed further, click on the 'file now' option.
• Step 4: For filing the return, choose the correct assessment year. For instance, if you are filing taxes for the earned income in the financial year 2024-25, then opt for the assessment year 2025-26.
• Step 5: After checking all the required documents for filing the Form 10BA, click on the 'Let's Get Started' option.
• Step 6: Fill in the requested information. After that, click on preview and then save.
• Step 7: Once you review all the mentioned information, for e-verification, click on 'proceed.' You can do e-verification either through
  • Digital Signature Certificate (DSC)
  • Aadhaar Card OTP
  • Electronic Verification Code (EVC)
• Step 8: Mention the received OTP, then click on the 'continue' option, and your Form 10BA is filed online.

This is how you can fill out the Form 10BA online simply using these steps. Here, for both Indian residents and NRIs, the procedure of filling out the form remains the same. Moving ahead, let's know how you can download your filled form from the site.

How to Download Form 10BA Online?

You cannot download the Form 10BA directly online, but only fill. To download the form online, using your credentials, log in to the e-filing portal of the income tax. Once you log in, go to the "e-file'> "Income Tax Form" > "File Income Tax Form." Under "person not dependent on any source of Income," search for Form 10BA and click on the "File Now" option.

This is how you can file the Form 10BA online, as the option of downloading the form is not available.

Final Thoughts

Whether it is an Indian resident or an NRI who pays tax in India, the Form 10BA undoubtedly provides value as it allows them to claim tax deduction under section 80GG for the rent they paid in India. Through this, their taxable income gets reduced and their overall tax liabilities are reduced. It is especially beneficial for individuals who have lower income and are self-employed. The above blog was all about Form 10BA of the Income Tax Act. Hope after reading it, you gain a proper understanding of it. Furthermore, if you need more guidance on this or are facing an issue in filing the ITR, contact Savetaxs. We have a team of experts who have years of experience in the tax field and can assist you better.