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
Download Form 12BB as a Word File
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.
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.