If you are an employee of a company, at the beginning of every financial year (or) while joining the company you have to submit ‘Income Tax Declaration’ to your employer. This is a provisional statement that has details about your proposed investments and expenses that are Income Tax deductible.
At the financial year end, you need to provide supporting Investment Proofs for these investments that you have specified in IT declaration.
Based on your proposed investments and expenses, your employer deducts TDS (Tax Deduction at Source, if any) from your monthly salary and deposits it to the government account. To calculate TDS, your employer considers the declared investments and expenses that are either Tax Exempted (or) eligible for tax deductions under Income Tax Act.
Till date there has been no standard reporting format or template available for furnishing the details of investment or expenditure proofs.
As of now, to claim tax benefits or rebate, an employee has to just mention the sum claimed under exempt allowances. But with effective from 1st June, 2016 to claim income tax deductions you need to submit new Form 12BB to your employer. It is also been made mandatory to submit documentary evidence of your investments / expenditures.
The Central Board of Direct Taxes (CBDT) has recently released New Form No. 12BB. This is going to be the new standard form for salaried tax payers to claim tax deduction on;
- LTA (Leave Travel Allowance) / LTC (Leave Travel Concession)
- HRA (House Rent Allowance)
- Interest payable on Home Loan (Section 24) and
- All Tax Deductions under Chapter VI-A which relates to allowable deductions under various sections including Section 80C, Section 80CCC Section 80CCD, Section 80D etc.,
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Submit new Form 12BB to claim Income Tax Deductions w.e.f 1st June, 2016
Below is the latest and standard Form 12BB. Click on the image to download Form 12BB.
The below details are part of the new Income Tax Rule 26C. Form 12BB has to be submitted by employees to their employers in relation to;
House Rent Allowance : House Rent Allowance is exempt under section 10 (13A) of the Income Tax Act. To claim HRA, you have to provide documentary evidence i.e., Rent receipts. You also have to provide details of landlord (name & address) and the amount paid as rent. Permanent Account Number (PAN) of the landlord shall be furnished if the aggregate rent paid during the year exceeds one lakh rupees.
Leave Travel Allowance : With effective from 1st June, 2016, the CBDT has made it mandatory for all the salaried employees to submit travel related expenditure proofs to their employers.
Interest Payments on Home Loans: To claim income tax deduction under section 24 on home loan interest payments, you have to furnish details of interest amount payable/paid, lender’s name & address & PAN number of the lender in Form 12BB. (Read: ‘Income from House Property & Income Tax Benefits‘)
Income Tax Deductions under Chapter VI -A: You have to provide the details & evidences of your investments or expenditures related to various sections like 80C, 80CCC, 80CCD, 80D (medical insurance premium), 80E (deduction of interest on education loan), 80G (donations), Section 80EE etc., in Form 12BB.
The CBDT has advised the employers to assess the evidence submitted by their employees and then accordingly decide the extent of tax that should be deducted at source from their salaries.
I believe that the tax authorities are aiming to bring in consistency in respect of the income tax benefits being claimed and also to ensure that necessary documentary evidence, as prescribed, is maintained while making the claims.
(Image courtesy of pandpstock001 at FreeDigitalPhotos.net) (Post Published Date : 05-May-2016)
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Hi Reddy gaaru,
My father is a pensioner and he is getting Rs.32,163 as pension through SBH bank account. He has submitted 12BB in 1st week of April 2017 in the bank. In that form, he submitted rent receipts for 96,000 and LIC policies for 26,000.But one person from bank called and said, system is not accepting rent receipts money so only LIC policies are valid for this year. Please tell us what to do as my father does not have own house and he is genuinely staying in rented house. What else investments we can do for tax exemption.
Dear Prasanna,
Your father can claim rent amount under section 80GG when filing Income Tax Return.
The Tax Deduction amount under 80GG is Rs 60,000 per annum. Section 80GG is applicable for all those individuals who do not own a residential house & do not receive HRA (House Rent Allowance).
The extent of tax deduction will be limited to the least amount of the following;
Rent paid minus 10 percent the adjusted total income.
Rs 5,000 per month.
25 % of the total income.
Kindly read : List of IT exemptions for FY 2017-18.
namaste
I have taken departmental home loan from govt of India as I am a central govt employee. While filling from 12BB for income tax, the PAN of the lender is to filled for claiming tax exemption on interest on Housing Loan. What should I write in the column as PAN of the lender (govt of india). Sanctioning Authority of Housing loan is President of India.
thanking you
Dear Sree ..You may check with your employer. I do not have answer to this question.
Whether “FORM-12BB” is to be submitted at the beginning of the year or at the end of the year?
Dear Naman ..It may depend on employer’s internal HR policies..I have noticed that some employers are accepting forms at the beginning of a FY and some mid-year, and some even in the final Quarter..
Hi Sir,
I have one SBI account which earlier i was using it as salary account for previous company,
Now i am using ICIC bank account with current organization.
Usually i am getting Message from SBi banck saying “TDS of INR 648 deducted for interest paid on Ac No xxxxx”
This message showing for different account number may be different sweep accounts inside same bank account.
Also some time i get message saying that “Your TDR/STDR no XXXX dated 12/11/2015 maturing on 12/11/2016.Please give instruction or else the deposit will be rolled over for the original term.”
Why TDS deducted for each quarter ?Can we handle this to not deduct TDS?
Could you explain in detail …
Regards
Sumesh
Dear Sumesh,
Have you submitted PAN to your bank?
If the interest paid on your deposit account is more than Rs 10,000 then Banks deduct TDS.
Kindly read: FDs & RDs – Tax implications.
Sir,
Why you asked PAN number submitted to Bank? TDS related to this or its mandatory?
Thanks for sharing the links and valuable inputs.
Dear Sumesh,
If the bank does not have your PAN details in its records, they will deduct TDS at 20%.
Pan is updated in both the banks.
Hi,
I had submitted my investment proof and details of investment done till Jan’17 with my previous organization. Now, in my new organization, which I have joined in Feb’17, I have to share FORM 12B ans Form 12BB both. Pl confirm if I need to mention entire year savings in Form 12BB or just those which were not mentioned in Form 12B.
PL REPLY URGENTLY
Regards,
Nitu
Dear Nitu,
You can provide your previous salary details and investment details done previously in Form 12B, and the proposed investment details in Form 12bb (for feb/march).
Hi Sreekanth,
I have joined in my new company on 13th Feb and already submitted my form 12BB along with proofs in my old company. Now in my new company they are asking me to submit investment proofs. Can I show this form 12BB to them or do I need to resubmit all the documents again. Also prior company I was not having any tax but now I am falling under tax. Please let me know do I need to submit the medical bills for this year itself.
Regards,
Srikar
Dear srikar,
Yes, you can submit your previous salary details & investment proof details to your new employer, they will accordingly calculate your TDS (tax liability, if any).
Hi,
I have missed to submit form 12BB with my employer. So tax has been deducted in this month February 2017. What is the next step to claim my tax ?
Is it possible to submit the Form 12BB now and get it adjusted with my next salary ? Same amount of tax will be deducted for next month as well. So please let me know.
Thanks in Advance,
Regards,
Sadguna
Dear Sadguna,
Once TDS is deducted, you have to claim it as REFUND (if any) by filing your income tax return.
i am receiving defence pension and also salary from current employer.
do i need to give info of pension in form 12 bb when
1. no column for the income declaration is given
2. When Pension Desbusing Agency ie bank is alreadt deducting TDS on pension,if i declare it the current employer will also start cutting tds
3. what is the requirement of form 15 bb when an indivisual if filling responsible for filling tax
Dear harish,
Kindly note that Pension income is a taxable income.
So, it is advisable you provide those details to your employer, so that they can calculate your TDS (if any) accordingly and issue you Form 16.
1 – Form 12b (Kindly check with your employer).
2 – You can provide both pension income and TDS details to your employer.
3 – I am not sure about From 15BB.
Dear Sir,
I have built a house in the ancestral property in my name and received home loan from SBI. Though the property was only in my name, the loan was taken jointly with my wife. So is it possible for my wife to claim housing loan benefits to deduct from her taxable salaried income.
Dear Rajesh,
As your spouse is not a co-owner/owner of the property, she cant claim tax benefits on home loan.
Kindly read: Joint home loan & tax implications.
My renter is asking for PAN card Xerox. I am hesitant due to security reasons. I am ready to provide PAN no.
Is it a mandate to provide Xerox as per their company policy.
Dear shib ..I believe he can just quote the PAN number in his employer’s portal. But if his employer insists on this then can’t do much.
Hi Sreekanth,
I left my job on May-2016 and joined new company in August 2016. Now new company needs previous compnay tax deductions form 12bb or form16a .I have provided form 16a to my new comonay and i need to submit only 2 months tax deduction for current finacila year 2016 – 2017 .I am checking with previous compnay no one replying for my mail .Is i need to show only 2 months current finacial year for previous company ,if , yes means how i can do it now as i they have rejeceted my previous company income form-16a .what sall i do now to show them ,if i not have proper documents and i not showed anything how much amount they will deduct and how many months they with current finacial year and my previous compnay current finacial year gross salary is 46852 and Total 65857 .After deduction all i will get 46852 gross salary for 2 months current finacial year.
I hope someone will help me for my concern with urgent bases.
Regrads,
Sanjay kumar
Mob:-99160573**
Dear Sanjay,
Is it Form 12B?
If you have salary slips, you can submit them to your new employer.
In case, they do not accept these, you can add your previous company salary details & investment proofs etc when filing your income tax return, along with the current income details. You then have to re-calculate your tax liability accordingly.
1. I purchased flat last year but don’t get possession till date, can I claim principle amount paid through EMI in 12bb.
My company not considering this as a investment until possession what to do? Can I claim it while filling ITR.
2. Also my company not considering stamp duty and registration fees in 12bb, what can I do?
I paid stamp duty and registration fees in last year but not claimed, can I claim this year while filling ITR.
Please guide
Dear Prashant,
1 – No. (assuming last financial year).
2 – No. If it is still in under-construction stage, you can not claim tax benefits.
3 – Kindly let me know the date of payment.
Kindly read: Under-construction property & tax benefits on home loan.
IS there any due date for submitting 12BB and LTA documents for FY16-17? I live in a temporary accommodation and I dont have any rent receipts or legal agreements with me. Can you suggest what kind of documents/evidence I can submit to avail HRA benefit?
There is no specific due date as such..generally employers do inform their employees on the cut-off dates.
Dear sir
my company required 12bb but may salary package is 15000/- Per year, my Basic is 10200/- HRA 4800/-
PT 208/- Per Month is it mandatory ?
Dear Ujjal,
If your income is below basic exemption limit and no TDS is deducted by your employer then Form 12BB is not mandatory.
But, suggest you to submit it as you have HRA and you can file ITR with NIL tax liability.
Hi Sreekanth Reddy,
I have stamp duty and registration fees reciept , but name of the applicant is my mother. Can i show this as proof to avail tax benefit under 80C? Do i need to declare something like dependancy in addition to this reciept? please clarify
regards,
kishore
Dear kishore ..As it is in your mother’s name, you can not claim the tax deduction u/s 80c.