Is filing form 10 BA mandatory to claim deduction u/s 80GG. Last year, i did not file 10 BA online. Appreciate if this can be clarified please.
Thanks.
Yes, filing Form 10BA is mandatory to claim a deduction under Section 80GG of the Income Tax Act. Section 80GG provides a deduction for individuals who do not receive any house rent allowance (HRA) from their employer but pay rent for their accommodation. The deduction under Section 80GG is the least of the following amounts:
- Rent paid minus 10% of the total income
- Rs. 5,000 per month
- 25% of the total income
To claim this deduction, the taxpayer must file Form 10BA along with the income tax return. Form 10BA is a declaration form that provides details of the rent paid by the taxpayer, the name and address of the landlord, and other relevant information. The form must be signed by the taxpayer and certified by the landlord.
Failing to file Form 10BA or providing incorrect information in the form may result in the disallowance of the deduction under Section 80GG, and the taxpayer may be liable to pay tax on the full amount of rent paid. Therefore, it is important to ensure that the form is filed correctly and all necessary details are provided.
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