Form 10BA – Declaration for claiming deduction on rent paid (Section 80GG)

Introduction

Form 10BA plays a crucial role for individuals who do not receive House Rent Allowance (HRA) but still wish to claim a deduction on rent paid under Section 80GG of the Income Tax Act. Chartered Accountants often assist clients—particularly self-employed individuals, freelancers, and professionals—who rent accommodation but don’t have HRA benefits. Filing Form 10BA correctly ensures compliance while helping taxpayers optimize deductions.

Who Needs to File Form 10BA?

Form 10BA must be filed by:

• Individuals paying rent for residential accommodation.

• Taxpayers not receiving HRA from their employer.

• Taxpayers (self-employed or salaried) whose income sources include business/profession or salary without HRA.

Conditions for Claiming Deduction under Section 80GG

Before filing Form 10BA, a CA must ensure that:

1. The individual, their spouse, or minor child does not own a residential property in the location where they currently reside.

2. The taxpayer has not claimed self-occupied property benefits for any other house.

3. Rent is actually paid and verifiable through receipts or rental agreements.

Deduction Limit under Section 80GG

The deduction available is the least of the following three:

• ₹5,000 per month (₹60,000 annually), or

• 25% of the total income, or

• Actual rent paid minus 10% of total income.

CAs must calculate this carefully while filing returns.

Step-by-Step Process to File Form 10BA Online

1. Login to the Income Tax e-Filing portal using PAN credentials.

2. Navigate to ‘e-File’ → Income Tax Forms → File Income Tax Forms.

3. Search for Form 10BA.

4. Fill in details such as:

   • Name and PAN of the taxpayer

   • Full address of the rented premises

   • Rent paid

   • Name and PAN of the landlord (mandatory if rent exceeds ₹1 lakh annually)

5. Submit the form and ensure it is verified using DSC/EVC.

Compliance Checks for CAs

• Verify rent receipts and rental agreements before filing.

• Ensure landlord’s PAN is collected where required.

• Cross-check that the client has not already claimed HRA or self-occupied benefits.

• Keep Form 10BA acknowledgment for audit trail and client records.

Common Mistakes to Avoid

• Claiming 80GG deduction while also receiving HRA.

• Entering incorrect PAN of landlord.

• Filing Form 10BA without proof of rent payment.

Conclusion

Form 10BA is an essential compliance document for taxpayers seeking deduction under Section 80GG in absence of HRA. Chartered Accountants play a key role in validating eligibility, ensuring proper documentation, and filing Form 10BA accurately to avoid future scrutiny.