How to File Form 10BA to Claim Section 80GG Rent Deductions

This page is for salaried taxpayers who do not receive House Rent Allowance (HRA) and wish to claim deductions under Section 80GG for rent paid. Filing Form 10BA is crucial in this process, especially for Assessment Year 2026-27, where clarity on tax benefits can significantly impact your overall tax liability.

Understanding Section 80GG

Section 80GG of the Income Tax Act, 1961, allows a deduction for rent paid by individuals who do not receive HRA. It provides relief to taxpayers who pay rent for their accommodation but do not have HRA in their salary structure. The deduction under this section is available to both salaried and self-employed individuals.

Eligibility Criteria for Claiming Section 80GG

• The taxpayer must be an individual (not a Hindu Undivided Family).
• The taxpayer must be paying rent for residential accommodation.
• The taxpayer must not receive HRA.
• The rent paid must exceed 10% of the taxpayer's total income.

Details Required for Filing Form 10BA

To file Form 10BA, you will need the following information:

• Name and address of the taxpayer.
• Address of the rented premises.
• Details of the rent paid (amount and duration).
• Details of the landlord (name and PAN, if available).

Filing Form 10BA: Step-by-Step Process

1. Obtain the Form

Form 10BA can be downloaded from the official Income Tax Department website or accessed through the e-filing portal.

2. Fill in the Required Details

Complete the form with the necessary details mentioned above. Ensure that all information is accurate to avoid any discrepancies.

3. Submit the Form

Once completed, you can submit Form 10BA online through the Income Tax e-filing portal or offline at your local income tax office.

4. Retain a Copy

After submission, retain a signed copy of Form 10BA for your records and future reference, as it may be required during assessments.

Calculation of Deduction Under Section 80GG

The maximum deduction available under Section 80GG is the least of the following:

• Rent paid minus 10% of total income.
• Rs. 5,000 per month.
• 25% of total income.

Example Calculation

Let's consider a scenario:

Ravi is a salaried professional earning a total income of Rs. 60,000 per month and pays a rent of Rs. 15,000 per month.

Calculation:

In this case, Ravi can claim a deduction of Rs. 9,000 under Section 80GG.

Common Mistakes to Avoid When Filing Form 10BA

Filing Form 10BA accurately is crucial to avoid defective return notices under Section 139(9) and late filing fees under Section 234F. Here are some common mistakes:

• Incorrect or incomplete details in the form.
• Failure to provide the landlord's PAN if it is available.
• Not retaining a copy of the submitted form.
• Claiming a deduction without ensuring eligibility criteria are met.

Conclusion

Claiming rent deduction under Section 80GG can significantly reduce your taxable income, especially for salaried taxpayers without HRA. By accurately filling out Form 10BA and understanding the eligibility criteria and deductions available, you can maximize your tax benefits. For more information on who can file ITR under various categories, you can visit this guide.