Form 10BA: Rent Declaration Process for Section 80GG
- Rashmita Choudhary
- 1 day ago
- 9 min read
Form 10BA acts as a declaration for individuals claiming rent deductions under Section 80GG when House Rent Allowance is not available. It confirms rent payments, verifies that no residential property is owned at the place of work or residence, and ensures eligibility for the deduction. Section 80GG is specifically designed for salaried and self-employed individuals who pay rent but do not receive HRA, making Form 10BA a mandatory compliance step. Since this deduction applies only under the old tax regime, accurate documentation becomes essential. TaxBuddy supports taxpayers by simplifying this process through guided preparation and error-free submission.
Table of Contents
What Is Form 10BA?
Form 10BA is a mandatory rent declaration form filed online by individuals seeking to claim rent deduction under Section 80GG of the Income Tax Act. It records essential details such as the rented property’s address, rent paid during the year, and the landlord’s information. Since Section 80GG allows a specific rent-related deduction to individuals without HRA, Form 10BA validates that the taxpayer meets the legal requirements and is not claiming benefits for self-owned residential property in the same city.
Understanding Section 80GG Rent Deduction
Section 80GG provides tax relief to individuals who incur rental expenses but are not receiving HRA. The provision is available exclusively under the old tax regime and applies to both self-employed individuals and salaried employees who do not receive HRA as part of their compensation. The deduction is calculated based on a predefined formula and capped annually, making Section 80GG relevant for individuals seeking relief on moderate rental costs.
Eligibility Criteria for Section 80GG
Several conditions must be satisfied to qualify for Section 80GG:
No House Rent Allowance should be received from the employer.
Neither the individual nor their spouse, minor child, or HUF should own residential property at the place of employment or residence.
If property is owned at any other location, it must not be claimed as self-occupied.
Rent must be paid for a furnished or unfurnished residential accommodation that the taxpayer uses as a primary residence. These requirements ensure the deduction applies strictly to individuals genuinely incurring rental expenses without HRA support.
Key Details Required in Form 10BA
Form 10BA captures essential rent-related and personal information. The key fields include:
Name and PAN of the taxpayer
Complete address of the rented property
Amount of rent paid during the financial year
Mode of payment (such as bank transfer, UPI, cheque, or cash)
Landlord’s name and address
Landlord’s PAN, which becomes mandatory when annual rent exceeds ₹1,00,000
Declaration that no property is owned at the place of residence or employment These details substantiate the claim for rent deduction under Section 80GG.
Step-by-Step Process to File Form 10BA Online
Log in to the Income Tax e-filing portal using PAN credentials.
Open the ‘e-File’ menu and select ‘Income Tax Forms’.
Choose ‘File Income Tax Forms’ and search for Form 10BA.
Select the relevant assessment year.
Enter details such as rental property address, rent amount, and landlord information.
Declare eligibility conditions as required under Section 80GG.
Submit the form and note the acknowledgment number for reference. This process ensures that the declaration is available for verification during assessments or automated checks.
Is Section 80GG Allowed in the New Tax Regime?
Section 80GG is not permitted under the new tax regime. The new system under Section 115BAC removes most deductions and exemptions, including rent deduction for individuals who do not receive HRA. Taxpayers choosing the new regime cannot claim this benefit, regardless of rent paid or eligibility conditions.
How Section 80GG Works in the Old Tax Regime
Under the old tax regime, Section 80GG allows a deduction based on the lowest of three values set by the Income Tax Act:
Rent paid minus 10% of adjusted total income
25% of adjusted total income
₹60,000 per year (₹5,000 per month) These limits ensure that only modest deductions are allowed and that the benefit remains targeted toward individuals with small to medium rental expenses.
Section 80GG Calculation Method (with Rules & Limits)
The deduction is calculated using this formula:
Compute total rent paid during the year.
Subtract 10% of adjusted total income.
Compare this amount with:
25% of adjusted total income
₹60,000 per annum
The least of the three amounts becomes the allowable deduction. Adjusted total income excludes capital gains, Section 80C to 80U deductions, and certain other components, ensuring that the calculation reflects regular taxable income.
Common Mistakes to Avoid While Filing Form 10BA
Common errors include entering incorrect rent amounts, failing to provide the landlord’s PAN when required, or mistakenly claiming HRA and Section 80GG simultaneously. Another frequent issue is mismatched rent declarations between Form 10BA and ITR schedules, leading to proposed adjustments or notices. Ensuring consistency across forms helps maintain compliance and prevents delays in processing.
When Is the Landlord’s PAN Mandatory?
The landlord’s PAN becomes mandatory when the annual rent exceeds ₹1,00,000. This requirement is designed to ensure transparency in high-value rental transactions and prevent potential mismatches in AIS or TDS reporting. If the landlord does not have a PAN, a declaration must be obtained, although claims may still face additional scrutiny by the department.
Link Between Form 10BA and Bank Account Documentation
Form 10BA is not a bank-related form, nor is it required for opening or operating a bank account. However, the information contained in Form 10BA often becomes useful when financial institutions request supporting documents to verify residential details or assess financial credibility. Banks and investment platforms sometimes require multiple proofs of address, especially when setting up accounts linked to salary credits, high-value transactions, loan applications, or KYC renewals. In such cases, a rent declaration backed by Form 10BA helps establish the consistency of the declared residential address.
When a taxpayer pays rent regularly and reports it through Form 10BA, the declared address aligns with banking KYC data, income records, and transaction trails. This consistency is particularly helpful for individuals who frequently change cities due to employment or who do not have traditional address proofs like utility bills in their name. Banks may also evaluate income–expense patterns for credit cards, overdraft facilities, home loans, or investment-linked products. Acknowledged rent payments supported by Form 10BA can assist in demonstrating residency stability and financial transparency.
Although Form 10BA is not submitted directly to banks, it indirectly strengthens compliance documentation by confirming the taxpayer’s residential status and financial behaviour. This becomes valuable when significant financial activity, especially loan or investment related, is tied to the same residence for which the rent is declared under Section 80GG.
How TaxBuddy Helps With Section 80GG and Form 10BA Compliance
TaxBuddy provides structured assistance for rent deduction claims under Section 80GG by ensuring accurate preparation of Form 10BA and maintaining consistency between declarations and the ITR. Its automated systems reduce errors in landlord data, rent calculations, and eligibility checks. With expert support and guided inputs, the platform simplifies compliance for individuals who rely on Section 80GG for tax relief.
Conclusion
Form 10BA plays a crucial role in validating rent deduction claims under Section 80GG for individuals without HRA. Accurate filing, correct landlord details, and proper income calculations ensure compliance with the Income Tax Act. Platforms like TaxBuddy streamline this process with automated checks and expert support, reducing the chances of notice-driven corrections. For anyone looking for assistance in tax filing, it is recommended to download the TaxBuddy mobile app for a simplified, secure, and hassle-free experience.
FAQs
Q1. Does TaxBuddy offer both self-filing and expert-assisted plans for ITR filing, or only expert-assisted options? TaxBuddy provides flexibility through two distinct filing options tailored to different income situations. The self-filing plan is supported by an AI-driven engine that reads Form 16, AIS, and TIS automatically, reducing manual entry errors. It guides users through each income schedule with real-time validations. For individuals with more complex tax structures—such as capital gains, multiple house properties, foreign income, or business income—the expert-assisted plan offers end-to-end support. Here, a qualified tax professional reviews every detail, ensures compliance with applicable provisions, and prepares the ITR on behalf of the taxpayer. Both plans aim to simplify filing while ensuring accuracy.
Q2. Which is the best site to file ITR? The official Income Tax Department portal remains the primary and most authoritative site for filing income tax returns in India. It is designed for taxpayers comfortable with navigating forms directly and entering all details manually. However, many individuals prefer more intuitive and error-resistant platforms that simplify the experience. TaxBuddy is often considered one of the best alternatives due to its AI-backed form-reading tools, minimal manual input requirements, and availability of expert review. These features help reduce filing errors and provide support throughout the assessment process.
Q3. Where to file an income tax return? Income tax returns can be filed through two main channels: the official government e-filing portal or private compliant platforms such as TaxBuddy. The government portal is suited for users who understand tax rules and are confident in manually preparing their returns. In contrast, platforms like TaxBuddy streamline the process by auto-reading documents, detecting inconsistencies before submission, and offering expert assistance. Both options ultimately submit the return to the same government system but differ in convenience and guidance.
Q4. Is Form 10BA mandatory for claiming Section 80GG? Form 10BA is compulsory when claiming a deduction under Section 80GG. This declaration confirms the taxpayer’s eligibility by stating that rent has been paid, no HRA has been received, and no residential property is owned at the place of employment or residence. Since Section 80GG claims often face scrutiny during assessments, Form 10BA acts as official proof supporting the claim. Failure to furnish this form can lead to disallowance of the deduction or adjustments under Section 143(1)(a).
Q5. Can Section 80GG be claimed if HRA is received? Section 80GG cannot be claimed by individuals who receive House Rent Allowance from their employers. The provision is designed exclusively for those who incur rental expenses but do not receive HRA benefits. Even partial HRA availability disqualifies the taxpayer from claiming Section 80GG, ensuring that only one type of rent relief is claimed for a financial year.
Q6. Does the new tax regime allow Section 80GG deduction? The new tax regime under Section 115BAC does not permit deductions under Section 80GG. This regime removes most exemptions and deductions in exchange for lower tax rates. Individuals choosing the new regime lose the ability to claim rent deductions, regardless of eligibility factors such as non-receipt of HRA or payment of rent. Section 80GG benefits apply only to taxpayers filing under the old regime.
Q7. What happens if Form 10BA details do not match rent declared in ITR? Inconsistencies between Form 10BA and the rent values entered in the ITR often trigger automated system alerts. The Income Tax Department may issue a proposed adjustment under Section 143(1)(a), asking for clarification or correction. Significant mismatches may also lead to scrutiny notices. Ensuring that rent amounts, landlord details, and property information are identical across both forms helps avoid delays and follow-up communication.
Q8. Is rent paid in cash eligible for Section 80GG? Cash rent payments are eligible for Section 80GG as long as they are backed by rent receipts, rental agreements, and verifiable landlord details. The Income Tax Department may request evidence during assessments, especially when cash transactions are involved. Maintaining proper documentation ensures that the deduction claim remains valid and defensible if questioned.
Q9. Does the landlord’s PAN need to be reported in Form 10BA? Providing the landlord’s PAN is mandatory when the annual rent exceeds ₹1,00,000. The PAN helps verify the landlord’s identity and ensures transparency in higher-value rental transactions. If the landlord does not possess a PAN, a written declaration from the landlord may be required, although such cases may undergo additional scrutiny during assessments.
Q10. Can self-employed individuals file Form 10BA? Yes, Form 10BA can be filed by both salaried individuals without HRA and self-employed individuals. Section 80GG applies equally to taxpayers earning business or professional income, provided they meet all eligibility conditions, including non-ownership of residential property in the city of residence or work. Filing Form 10BA ensures that the declaration is recorded for compliance purposes.
Q11. Does filing Form 10BA affect the choice of ITR form? Filing Form 10BA does not influence the selection of the appropriate ITR form. The form is submitted independently as a declaration and does not alter income categories or reporting requirements. The ITR form continues to depend on income type—such as ITR-1 for simple salaried income or ITR-3 for business income—regardless of the Section 80GG claim.
Q12. Can Section 80GG be claimed if the property is owned in another city? Section 80GG allows a claim even when property is owned in another city, provided that the owned property is not treated as self-occupied. The provision requires that the taxpayer, spouse, minor child, or HUF must not own residential property at the city of employment or residence. If an owned property exists elsewhere, it must be classified as let-out or deemed let-out to remain eligible for Section 80GG.
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