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;
Latest Articles :
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
Filing your Income Tax Return (ITR) is not just about meeting deadlines—it’s about choosing the…
Retirement planning in India is often misunderstood. Many people think any long-term savings or investment…
You’ve probably seen the same property quoted at different prices. One person says ₹60 lakh,…
Buying insurance is easy. Getting your claim settled—that’s where the real test begins. For any…
Gifting immovable property—like land, plots, or houses—is super common in India. Families often do it…
Most people believe that investing alone is enough to create wealth. But in reality, many…
This website uses cookies.
View Comments
Hi,
I had been working in an organization from April to September 2016.Tax was deducted when i came out of the office.But i have documents like HRA,home loan and medical bills.
How to claim the amount which has been deducted?
Is current employer can adjust the amount for the whole year?
Thanks.
Dear Kalimuthu,
Firstly, you can submit the income details of your ex-employer to your current employer.
You can also submit investment details to your current employer.
HRA can be claimed when you file your income tax return. Medical bills can not be claimed with your current employer. Home loan deduction can be claimed.
Kindly read:
Income Tax Declaration & List of Investment Proofs
Understanding your Form 16 & other Tax related forms (Form 16A & Form 26AS)
Dear Mr. Shreekanth,
Good evening.Please guide me, I am Living with my Parents and the Property is in the Name of my Grand Parents.
Now for to Claim HRA, can I pay money to my Father as a Rent and claim it.
And He has the PAN card but haven't fill ITR till now (Age 67 yrs), so in this Case if Required his PAN to mention ?
Hope my view point is clear to you.Thnaks
Vishal Dogra
Dear VISHAL,
If the property is in the name of your Grand parents, you can pay the rent to them.
Yes, you can quote your grand father's PAN card num (as your landlord).
In case if the rental income to your grand parent is more than the basic exemption limit, he has to file his income tax return.
Dear Sreekanth
Thanks for the reply , however my Grandparents are no more and the Property is combined.Now in this case can I claim on the name of my Father . And he has on pension of 15 K per month having PAN account but never fill ITR till now.
Please suggest.
Thanks
Vishal.
Dear Vishal ..Yes, you may do so. But the suggestion regarding filing ITR remains the same.
Dear Sreekanth,
If Mr.Vishal has an apartment in the same city, which is let out. Can he claim HRA?
Regards,
Srivathsan
Dear Srivathsan,
If it is a let-out one then he can claim HRA.
Dear Shrikant,
I have seen visited your blog and found no of view points and valuable information regarding the saving and Investment.
In my case I need your advice as I am also working in private organiosation and pay HRA of 14k every month to my landlord and he is very smart and refuses to share his PAN details, neither he accept any NEFT transaction and becase of this issue I can only claim 8333 /- rs per month tax relif instaed of my campany will provide me HRA of 11k as per my present designation. I will be very thankful how we can handel this sitiuation of take some action of such type of Blackmoney creator landlord.
is there any way how I can find his PAN as he never share and only accept cash amount in every first day of month and never provide any rent slips as well
Please share me the details on my ID
Regards
Sandeep
Dear Sandeep..If he is not providing his PAN details, you may try finding a new rental property, isn't that a better option??
Thank you for your appreciation!
Hi,
Thank you for the information. I live in hostel and get receipt for rent paid. I am salaried employee (HRA is not included in my salary). Can I claim HRA? How much? If yes, would I have to give it to my employer or I can claim later when filing return?
Thanks
Dear Arsh,
If you pay rent and do not receive HRA as part of your salary, you can still claim the tax deduction under section 80GG.
To claim the tax benefit under Section 80GG, you must pay rent for the house you live in, and not get HRA for even a part of the year.
Also, you should not own any Self-occupied house.
The lowest of the below will be considered as the deduction under section 80GG:
Rs 2,000 per month (or)
25% of total income (or)
Actual Rent less 10% of Income .
Thank you so much for the reply.
I just wanted to confirm if it is applicable to hostel too. I guess the answer is yes.
Thanks.
Hey sir
What to do if landlord PAN is not available
Dear Jyoti..In case landlord does not have PAN, then he needs to give declaration.
You may encourage and convince him to apply for PAN.
Hello Sreekanth,
How and where should we get the adress and Pan of lender(in case a housing loan is taken, and the lender is a bank).
Thanks in advance for your answer!
Dear Vishal ..You can request your lender (bank) to provide the required details.
sir, i am a worker in a private firm, with the salary of 25000 per month. but i dont get my full salary due the leaves. my ofiice is seeking me to fill the 12bb form. if every month tax will get cut from it, it will be very low income for me to survive in delhi, as i have to send money to my family too. can you please suggest me anything? i live on rent, and dont have any lic policy and what else.
please sir please help me.
Dear Neha,
Kindly read:
List of tax deductions.
Income tax declaration & investment proofs.
Tax treatment of various financial investments.
Hi Sreekanth,
My house owner does not have a PAN, I believe it is mandatory to submit 12BB with PAN number of the landlord if the rental income exceeds 1Lakh.
In this case how do I claim HRA, especially when the house owner does not have a PAN to fill in the form
Please let me know
Dear Arun,
In case landlord does not have PAN, then he needs to give declaration.
Encourage and convince him to apply for PAN.
Dear Sreekanth,
Is declaration by landlord still valid? In form 12bb, they mentioned only have to get PAN if HRA exceeds more than 1 lakh, they no where mentioned or landlord has to sign a declaration. Every one has this question in mind and few employers are not accepting declaration. is there any rule change?
Please advise.
Dear Sunil,
I believe that delcaration by landlord can still be considered as 'documentary evidence'. But it depends on Employers' policies and guidelines.
I guess there is no new update on this from the IT dept though.
Hi Srikanth,
Hope the exceptions U/S 10 can not be claimed while doing the ITR. Please correct me if I'm wrong.
Dear Praveen,
Allowances like LTA & Medical allowance can not be claimed, however I believe that HRA can still be claimed when filing the ITR.
Hello,
I am a Govt employee and I have been availing LTC every year but till date I have not claimed any in ITR. Can you please suggest and clarify my following doubts:-
1. Is LTC amount is already added to my total salary earned? ( as I have calculated 12 months salary which is not matching with the amount shown by the employer ( This amount is higher than my gross salary calculated)
2. If, the amount is added then how I can claim LTC amount in ITR?
Thanks
Dear Alam ..Kindly check if LTC is given in your Form 16 (u/s 10).
No, it is not given. Then what I have to do now, kindly inform. Thanks
Dear Alam ..You can not claim LTC/LTA now when filing ITR. It should have been included in Form-16 issued by your employer.