Form 10BA of Income Tax Act: Purpose, Filing Process, and Importance

Introduction

What is Form 10BA?

Paying rent can take up a large share of your monthly income, especially if you live in a metro or urban area. If your salary includes an HRA component, you can claim tax benefits under Section 10(13A). But if your salary doesn’t offer HRA, there’s still a way to claim tax relief on rent paid. The Income Tax Act, under the old tax regime, allows you to claim a deduction under Section 80GG, provided you file Form 10BA. 

Form 10BA of Income Tax Act is a declaration you need to file if you’re claiming a deduction for rent paid on residential accommodation, especially when you’re not receiving HRA. It’s meant for individuals under Section 80GG who pay rent but don’t get HRA from their employer.

Importance of Form 10BA for Claiming House Rent Deduction

Filing Form 10BA of Income Tax Act helps lower your taxable income if you pay rent but don’t receive HRA. It supports your claim under Section 80GG and ensures you stay compliant with income tax rules.

It also acts as a valid proof of rent paid, which is helpful during tax assessments, audits, or financial verifications. Just like businesses keep track of indirect tax records for transparency, maintaining accurate declarations through Form 10BA income tax keeps your personal tax filings clean and well-documented.

Who Needs to File Form 10BA?

Eligibility Criteria for Filing Form 10BA

You need to file Form 10BA of Income Tax Act if you’re paying rent but don’t receive HRA from your employer. This applies to both salaried and self-employed individuals. However, to claim a deduction under Section 80GG, you must meet all of the following conditions:

• No HRA in Salary: You don’t receive House Rent Allowance as part of your income.
• Rent Paid for Self-Occupied Residence: The house must be your primary place of stay, not a commercial space or a property you don’t live in.
• No Ownership at Work Location: You, your spouse, minor child, or HUF must not own any residential property in the city where you work or live.
• No Home Loan Deduction Claimed: You haven’t claimed deductions on a self-occupied property elsewhere.
• Rent Exceeds 10% of Total Income: The rent you pay should be more than 10% of your total income.
• Form Filing Requirement: You must file Form 10BA income tax to officially declare your eligibility for Section 80GG.

Applicable Scenarios: No HRA Received from Employer

Form 10BA income tax is meant for individuals who pay rent but don’t receive House Rent Allowance (HRA) as part of their salary. This is common in cases where your employer doesn’t include HRA in the salary structure, or if you’re self-employed, a freelancer, or working with an organization that doesn’t offer standard benefits. You can’t file Form 10BA of Income Tax Act if:

• You receive HRA from your employer
• You or your immediate family owns a house at your work location
• You’re already claiming deductions on a self-occupied property or home loan

Purpose of Filing Form 10BA

Claiming Deduction Under Section 80GG

Filing Form 10BA enables you to claim deductions under Section 80GG, a benefit available to those who pay rent without receiving HRA. The deduction amount depends on various factors like income level and rent paid, but without submitting this form, your claim won’t be valid.

Declaration of Rent Paid for Residential Accommodation

Through 10BA of Income Tax Act, you declare the amount of rent you paid, landlord’s details, and confirm that you’re not living in a property owned by you, your spouse, or your minor child in the city of employment.

Conditions to Claim Deduction Under Section 80GG

Income Limitations and Rent Payment Requirements

To claim a deduction under Section 80GG, certain limits and calculations apply. The deduction you can claim is the lowest of the following:

• ₹5,000 per month (₹60,000 annually)
• 25% of your adjusted total income
• Actual rent paid minus 10% of adjusted total income

Adjusted total income is calculated after excluding long-term capital gains (LTCG), short-term capital gains under Section 111A, income taxed under Sections 115A/115D, and all deductions from Section 80C to 80U (except 80GG itself). The calculation for deduction goes as follows:

• Adjusted total income: ₹7,20,000
• Monthly rent paid: ₹14,000
• Annual rent: ₹1,68,000

Calculation:

• ₹5,000 x 12 = ₹60,000
• 25% of ₹7,20,000 = ₹1,80,000
• ₹1,68,000 – 10% of ₹7,20,000 (₹72,000) = ₹96,000
• Eligible deduction = the least of the three = ₹60,000

Non-Ownership of Residential Property in Specified Location

To file Form 10BA of Income Tax Act and claim this deduction, you must not own a residential property at the location where you live or work. This condition applies not just to you, but also to:

• Your spouse
• Minor child
• Hindu Undivided Family (if applicable)

In addition, you shouldn’t be claiming tax benefits on a self-occupied property elsewhere. These checks ensure that the deduction under Form 10BA income tax is claimed only by those who genuinely need relief for rent paid.

Details Required in Form 10BA

Personal Information of the Taxpayer

You’ll need to enter your full name, PAN, address, and details of employment or business. Make sure these match your income tax profile to avoid discrepancies during processing.

Details of Rent Paid, Landlord’s Name, PAN, and Address

The form also requires:

• Monthly rent amount
• Mode of payment
• Name and address of your landlord
• PAN of the landlord (if annual rent exceeds ₹1 lakh)

Keeping these details ready before filling out Form 10BA income tax is helpful.

Step-by-Step Guide to Filing Form 10BA

How to File Form 10BA Online Through Income Tax Portal

Here’s how to file Form 10BA online:

1. Visit incometax.gov.in.
2. Log in using your PAN and password.
3. Go to the “e-File” section and choose “Income Tax Forms”.
4. Select “Form 10BA” from the drop-down.
5. Fill in the required details
6. Submit the form online with a digital signature (if applicable) or via OTP verification.

Once submitted, you can proceed to claim the deduction under Section 80GG while filing your Income Tax Return (ITR). Form 10BA must be filed before filing your ITR. For FY 2024–25,  the due dates are:

• Non-audit cases: 15 September 2025
• Audit cases: 30 September 2025

Checklist: Information and Documents Needed Before Filing

Before you begin, keep the following information and documents ready to ensure a smooth filing process:

1. Personal and Property Details:

• Your full name and PAN
• Address of rented property
• Rental duration and monthly rent paid
• Landlord’s name, address, and PAN (if applicable)

2. Documentation:

• Rent agreement mentioning rent terms and tenant/landlord details
• Rent receipts, preferably monthly or quarterly 
• Proof of payment
• Landlord’s PAN mandatory if rent exceeds ₹1,00,000 annually. If not available, obtain a written declaration
• Declaration of non-ownership confirming that no self-occupied residential property is owned by you, your spouse, minor child, or HUF at your place of work or residence.

Consequences of Not Filing Form 10BA

Denial of Section 80GG Deduction

Without filing Form 10BA, your deduction under Section 80GG may be rejected, even if you paid rent. This can impact your overall tax outgo and refund eligibility, especially under the old tax regime where such deductions matter.

Possible Penalties for False or Incorrect Declarations

Non-filing or incorrect filing of Form 10BA may result in several consequences, including:

• Increased Tax Liability
• Interest on Tax Shortfall
• Penalties for Misreporting
• Compliance Complications
• Impact on Future Filings

Recent Updates Related to Form 10BA

Changes in Filing Procedures and Format (Latest Rules)

In recent years, the Income Tax Department has streamlined the process. Form 10BA is now only accepted online via the portal. This move supports better tracking, limits misuse, and strengthens compliance, similar to how windfall tax disclosures are now expected to follow new reporting formats.

Best Practices for Filing Form 10BA

Maintaining Proof of Rent Payments

Always maintain a digital trail, including bank transfers, UPI records, and rent receipts.

Ensuring Accurate and Honest Declarations

Make sure all entries in Form 10BA of Income Tax Act, including the landlord’s PAN, rent amount, and property address, are complete and correct. Avoid rounding off or inflating figures. This level of transparency is also beneficial if you’re engaging with financial planners or stock market advisory professionals, where income and tax records are assessed closely.

Conclusion

Filing Form 10BA of Income Tax Act isn’t just a procedural step; it directly affects your eligibility for rent deductions under Section 80GG. Whether you’re self-employed or in a salaried job with no HRA, a timely and accurate filing helps lower your tax liability, especially under the old tax regime. Make sure to review rent documents and file early to avoid last-minute errors.

FAQs

1. Is Form 10BA mandatory every year?

Yes, if you’re claiming a deduction under Section 80GG, you need to file Form 10BA every financial year.

2. Can salaried employees also file Form 10BA?

Yes, if they are not receiving HRA from their employer and paying rent on their own.

3. What documents should be kept after filing Form 10BA?

Keep rent receipts, bank statements showing rent payments, landlord’s PAN, and the final 10BA form copy.

4. What is the deadline for submitting Form 10BA?

Form 10BA should be submitted before filing your ITR. So, if you’re planning to file ITR online before July 31, submit this form well in advance.

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