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;
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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)
This post was last modified on March 26, 2026 5:10 pm
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View Comments
Hi Sreekanth,
Could you please confirm whether 12BB form should be filled with the amount which is paid till December'16 month. Should we mention full amount that includes till Mar'17 which is yet to pay. Please clarify.
Dear Nidhila,
You can declare for full FY, it all depends on your employer if they are ready to accept it or not. Generally they do accept.
Hi Sreekanth,
I changed my company in November 2016. I provided the tax declarations in Form 12BB and submitted it to my new employer. There is a section in the Form 12BB called "Previous Employer Income". I do not know what I was thinking, I just multiplied my monthly salary from previous employer by 12 (months) and entered the same there. Now, my current employer has just added it to my gross salary and deducting tax , which is resulting in quite a few thousands as tax.
My previous employer already deducted tax for my previous month salary. So, why am I being taxed again for the same amount.
I wrote emails to the Payroll team in my office and they are just ignoring it. I just want someone to explain me what is going on here...
I am just hoping someone can help me on this forum.
Thank you!
Dear Nithya,
You should have given income as well as TDS (deducted by ex-employer) details to your current employer.
Nevertheless, you can claim excess TDS (if any) being deducted by your employer when you file your Income Tax Return for AY 2017-18.
Read: Income tax declaration & proofs.
Hello Sir,
I am paying a rent of 21,000 per month since 22 aug 2016 (non metro)but the issue is the owner resides in US from long time and doesnot have a PAN number and they are ready to sign the declaration that they do not have PAN number.
how do I proceed, I only see one optuoin i.e. to reduce the declared rent to 8333 per month.
Can you please suggest the step forward.
vikrant
Hi Sreekanth,
I have the exact same query. The landlord is in US and has never had a PAN. he is willing to give the declaration, but my company's finance team suggests that i reduce the HRA amount to 8333/-. This would result in huge taxation!
Is there any indication from the govt that PAN is mandatory and declarations wont be accepted? Also is Form 60 something that can be used in this case?
Thanks,
Siddarth
Dear vikrant.Siddarth,
I believe that 'declarations' by landlords are still being accepted and I am not sure if there is any latest/modified notification on this.
Basically this is a compliance measure by your employer(s). So, you may have to reduce your HRA or convince them about declaration (if your case is a genuine one).
Hi Sreekath,
I am filling my Tax proofs at my company.
They are asking for PAN of Bank for Interest Paid on Housing Loan ?
How can I get this info.
regards.
Dear Vijay,
You can contact your banker and get the required info.
I have cleared my home loan due(per-payment of balance Rs. 6,74,000) in June 2016. Can I claim HRA as tax benefit now in my tax proof submission. I have declare my home loan interest/principal at the time of IT Declaration.
Dear Sudhir,
You can claim HRA for the respective period.
Hi Sreekant,
I have a query regarding the HRA , kindly clarify if the employee has stayed in two different houses in a single financial year and the total input is summing up to 1 lakhs, but the individual landlord sum is not exceeding 1 lakhs, in this case whom pan details should the employee get ?
TIA,
Regards,
Sri Ethiraj
Dear Sri,
I believe that you need to declare both PAN numbers respectively.
Hi Sreekant,
I have recently joined a new organisation. I wanted to submit my investment declaration as per form 12BB through a third party HR portal. I pay a rent of Rs 15000/- PM to my land lady (old). But she doesn't has PAN number. Can I declare pan not available in PAN field of land lord? I tried, but it is not accepting the entry. Can you guide me on this issue?
Thanks in advance,
Ram.
Dear Ram,
You need to contact your Service provider or Employer if they can accept the (if the said application has such provision) Self-declaration given by the landlord/lady that PAN number is not available.
Hi Sreekanth,
Earlier the employees could give a declaration if the landlord did not have a PAN. After introduction of From 12BB is this still valid or would it now be compulsory to give the PAN of landlord if the rent paid is more than 1 lakhs? I am not sure if in the e-TDS return the PAN field is compulsory or not
Dear Rankit ..As per my observation, most of the employer are now insisting on submission of Landlord PAN number. So, advisable to convince the owner of the property to get a PAN (if does not have) or to provide the details (if he/she has..).
What if owner is not Indian Resident? He doesn't have PAN number
Dear Mihir,
Self-declaration document by landlord is declared. Also, kindly note that TDS on rent payable to NRI has to be deducted by the tenant.
Hi Sreekant,
I have query regarding lender information. What would be the lender information(Name,Address & PAN) in case of 'loss on let out property'. It would be bank information from where we have taken loan or it would be the information of person to whom we have let out the property.
Thanks in advance,
Gaurav
Dear Gaurav,
Lender, here refers to the lending institution from where the loan has been taken.
Hi Sreekant,
If its lending institution is a bank how to know their PAN number?
Dear Vadivel ..One can get it from the respective/concerned Lender or banking institution.
Dear Mr. Sreekanth,
My query is, what will be activities (processes) of the employer on form 12BB submitted by the employee.
1. Will it be submitted to Tax department along with 24Q?
2. what data from this form will be included in 24Q?
Dear Vidyesh,
1 - No.
2 - Your investment details (tax deductions) & allowance claims will be provided in the Form 24Q.
Kindly note that Form 24Q has details of salary paid and TDS deducted from employees.
Form 24Q has clear column number 357 and 358 asking Name and PAN of Landlord or Lender
Hi Sreekanth,
I would require a little more information on this. Can you please answer below questions?
1. When this form 12BB needs to be submitted by Employee to Employer?
2. What if employee update 12BB every month then Employee is required to submit Form 12 BB every time??
3. Do Employer needs to keep all Form 12BB or the latest copy submitted when actual proofs submitted?
4. How employee can submit actual proofs at starting of FY because either he is planning to invest or payment date is due?Given the fact that it is provisional statement.
5. Previous year premium paid slip can be used as proof in starting for current FY?Given the fact that it is provisional statement. Can we extrapolate/anticipate the expenditures based on previous years?
Kindly Reply.
Dear Gaurav,
1, 2, 3 , 4 & 5 - There is no specific date or month as such, depends on the Employer's policies & guidelines.
Read: Income Tax Declaration & List of Investment Proofs