Form 10BA is crucial for renters seeking a tax deduction on their rent payments. Often, individuals who do not receive House Rent Allowance (HRA) from their employers, or self-employed person living on rent can benefit significantly from Form 10BA. By understanding its purpose and filing process, you can potentially reduce your tax burden.
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Form 10BA is a declaration form mandated by the Income Tax Act, 1961, for individuals claiming a deduction under Section 80GG for rent paid. This section allows individuals who do not receive House Rent Allowance (HRA) from their employers or self-employed person living on rent to claim a deduction on the rent paid for their residential accommodation.
Yes, Form 10BA is mandatory if you want to claim a deduction for rent paid under Section 80GG of the Income Tax Act. This form allows taxpayers to reduce their taxable income significantly, helping those who spend a large portion of their income on rent save on taxes.
The reasons for the necessity of Form 10BA include:
Submitting Form 10BA is necessary when filing the income tax return. To ensure a successful deduction claim, it is crucial to file the form before the due date. During the filing process, it is essential to have all the necessary documents readily available for attaching to the form.
Form 10BA of the Income Tax Act must be filed before submitting your income tax return. The due date for Form 10BA is the same as the due date for income tax returns. For instance, for the financial year 2023-24, the deadline to file Form 10BA is 31 July 2024. If your accounts require an audit, the due date for filing this form is 30 September 2024.
Upon successful completion, Form 10BA will be submitted and e-verified.
This deduction can help reduce your taxable income, thereby lowering your overall tax liability. The money you save on taxes could then be invested in options like Fixed Deposits (FDs) to grow your wealth. Bajaj Finance, one of the most trusted NBFCs, offers attractive interest rates of up to 8.85% p.a. on their Fixed Deposits. You can easily invest in their FDs by visiting their nearest branch or online through the Bajaj Finserv website or app.
Also read: What is Form 10E
Lowest of the following will be considered as deduction under Section 80GG
Understanding Form 10BA can simplify claiming a tax deduction for rent paid in India. This form helps renters who do not receive House Rent Allowance (HRA) from their employers. It is especially beneficial for self-employed individuals and those with lower incomes. By encouraging renters to file Form 10BA, the government promotes both responsible tax compliance and a healthy rental housing market.
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If you file Form 10BA after the due date, you may be subject to late fees. These fees are calculated at Rs. 100 per day, with a maximum limit of Rs. 5,000. Form 10BA can be submitted either online or offline.
If Form 10B is not filed by a charitable or religious trust, the organization may lose the benefit of tax exemption on its income, as the form is necessary for claiming tax benefits under Section 11.
Yes, Form 10BA is mandatory if you are claiming a deduction under Section 80GG for rent paid, without receiving House Rent Allowance (HRA). It serves as a declaration to claim the deduction.
