Income Tax 2016-17 – All Salaried Employees to declare deductions and savings under Form 12BB
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.
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 absence 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.
