Income Tax 2016-17 : All Salaried Employees to declare
deductions and savings under Form 12BB : Download Form 12BB as a Word,
Excel or PDF file- All Employees to file Declaration under Form 12BB to
claim deduction for savings under Section 80 C, payment of house loan
interest under Section 24, and HRA exemption under Section 10
The
Finance Act, 2015 had introduced section 192(2D) of the Income-tax Act,
1961 (the Act) wherein the person responsible for making payment of
salary (employer) was obliged to collect the necessary evidence or proof
in the prescribed form and manner to allow any claim for any deduction
and/or tax saving investments. However, the relevant rules and form were
yet to be prescribed. The Central Board of Direct Taxes (CBDT) has come
out with the relevant rules1 and also prescribed the form i.e. Form
12BB, in which salaried employees would now be required to furnish
evidence of claims and tax saving investments to the employer.
Download Form 12BB as a PDF file for
declaring your deductions and savings to your Employer
Download Form 12BB as a
Word File
Download Form
12BB as Excel File
Till
Finance Act 2016, there was no standard format for salaried employees
for filing declaration with their employer to claim deduction for
savings under Section 80 C, payment of house loan interest under Section
24, and HRA exemption under Section 10. In the absense of single
declaration form, employees had to submit proof for each investment made
in the year.
As a relief to employees and also to employer,
Income Tax Department has introduced a new Form 12BB. This form,
applicable from June 1, 2016, will act as a single entity that you can
use to declare your to claim deduction for savings under Section 80 C,
payment of house loan interest under Section 24, and HRA exemption under
Section 10.
Deductions that can be declared under Form 12BB:
The
standard Form 12BB is for all salaried Employees to claim tax
deductions. You use can use it to claim deductions for leave travel
allowance (LTA/LTC), house rent allowance (HRA), interest paid on home
loans, and all other tax deductions pertaining to Chapter VI-A of the
Income Tax Act.
House Rent Allowance (HRA):
With
form 12BB, you can claim any HRA tax deductions under Section 10 (13A)
of the Income Tax Act. Along with 12BB you will need to provide the
relevant rent receipts for this deduction. You will also need to submit
the name and address of the landlord. In the event the aggregate rent
paid by you exceeds Rs 1 lakh, you will also need to submit the
Permanent Account Number (PAN) of your landlord.
Amount claimed under Leave travel Concession (LTC)
With
Form 12BB, you need to furnish amount and provide evidence of expenses
made towards your travel. Unlike in the past, it is now mandatory to
provide proof of all travel expenses in the form of receipts for your
claim.
Interest on home loan under Section 24:
Earlier to
claim deduction for interest paid on home loan, we have to submit
interest certificate from the concerned bank. Now, in addtion to the
same we will have to fill up Form 12BB to claim deductions under Section
24 of the Income Tax Act.
Savings / deductions under Chapter VI-A:
All
tax deductions under Section 80C, Section 80CCC, and Section 80CCD, as
well as other sections like 80E, 80G, and 80TTA come under Chapter VI-A
of the IT Act. For deductions, fill up Form 12BB and provide details and
proof of your investments and expenditures incurred related to the
relevant section you are seeking deductions under.
