For the purpose of reporting deductions under Section 80GG of the Income Tax Act, Form 10BA is a tax form used in India. If the person does not own a home or if the home is not accessible for his use, this clause permits deductions on rent paid for residential accommodations. The document must be filed with the person’s income tax return.
Specifications Needed for Tax Form 10BA
The information needed for Form 10BA includes:
- The person’s name and Permanent Account Number (PAN).
- Information about the specific costs that are being claimed as deductions (such as rent paid for a self-occupied property or home loan interest)
- The sum of the requested deductions
- A record of the costs (such as rent receipts or home loan statements)
- The statement confirms that the person has no residential property in the city
- A declaration that the requirements outlined in the applicable provision of the Income Tax Act have indeed been satisfied.
How Can I Submit Form 10BA online?
- Go to the Income Tax e-Filing Portal and sign in with your User ID, PAN, or TAN and password to access your account.
- Go to e-file > Income Tax Forms on the dashboard. submitting tax forms Click “File Now”
- After doing a search for Form 10BA under the heading “Person not reliant on any Source of Income.”
- On the following screen, click “Let’s Get Started” after selecting the pertinent evaluation year and clicking “Continue.”
- Give specifics for each choice.
- Please choose House Property Details.
- Enter the necessary information, such as the address of the rental property, the landlord’s name and address, the amount of rent that was paid, etc., and click Save.
- Next, choose Declaration. tick the box, then click “Save”
View and carry out e-verification> choose the e-verification mode, then click “Submit” Form 10BA will be submitted and properly e-verified.
Income Tax Deductions Under Section 80GG
An individual may deduct the rent they pay for a self-occupied property by using deductions under Section 80GG of the Income Tax Act. The person should not have a home and must not be residing in a home owned by their spouse, minor child, or any other designated relative in order to be eligible for these deductions. The person shouldn’t be eligible for HRA. The lesser of the following amounts may be claimed as a deduction:
- Rent exceeding 10% of total income but not exceeding 25% of total income Rs 5,000 per month.
- The tax deduction u/s of 80GG is given to the least of the following:
- Total rent paid minus 10% of basic salary
- 25% of the adjusted gross total income
- INR 60,000 per year (INR 5,000 per month)
- To claim the deductions, the person should file Form 10BA with all necessary supporting documentation.
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