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
Should I use this form to declare Loss from Property or there is other form? I have two house Provision Interest on one home is Rs 3.65 L and other home Rs 8.78 L Rental income is Rs 12k & 20k respecctivly. how do I show herre. Both loan from Financial inst
Thanks
Pankaj Gera
Dear Pankaj,
You can declare both in Form 12BB.
May be you can enclose one more Form 12BB to it and let your employer know this.
Hi Sreekanth,
Form 12BB has to be filled at the beginning of Financial Year (FY). At the beginning of FY, I'm entering only House Rent in Form 12BB. If I open an LIC or PPF at the mid of the FY, how to add it in Form 12BB?
Thanks,
Nithi
Dear Nithiyanantham,
I believe that you can submit one more Form 12BB if your employer can accept it. Else, you can claim the tax deductions when filing ITR.
As per new tax rules can I submit declaration if owner do not have pan card? I am not able to get this information anywhere. Please someone clear this doubt.
Dear Sam,
Kindly note that the 'declaration form' has to be filled and signed by the Landlord.
How does one produce PAN of Housing Loan lender when the loan is taken from a BANK?
How does one produce PAN of Housing Loan lender when the loan is taken from a financial institution?
In case of "Income from house property", it is mandatory to mention the PAN of bank or financial institution. If you do not have this information currently, please approach to the concerned bank or financial institution. For the current month, you can mention the ‘PAN of lender’ as PANNOTAVBL.
Thank you dear Yashwant for sharing your inputs. Kindly keep visiting!
Dear Ranjay ..Is it compulsory to submit? I am not aware of this....
I am staying on lease. Can you please confirm how to get HRA tax exempted.
Dear Jyoti..If you are receiving HRA in salary. If you have paid the lease amount for the entire period, calculate it Financial Year wise and request your land lord to issue a separate receipt Financial Year wise and can produce the same to your office.
This form 12bb is submitted monthly, qtrly or yearly.
Dear brijendra ..Depends on your employer's policies. Ideally on an yearly basis..
What is to be done if my EX-Employers(2 of them) have till 2nd July.2016 NOT issued me my Form16 for FY1516/AY1617 despite several Reminders?
Dear TVS,
Employers are supposed to issue the form to employees by 31 May of the assessment year (AY)
And if the forms are not issued by then, under section 272A(2)(g) of the I-T Act, the employer is liable to pay a penalty of Rs.100 per day of default till it issues the form.
Employees can approach the accessing officer (AO), under whose jurisdiction she has to file her ITR, and give a written complaint against the defaulting employer. Based on the complaint, the AO may take appropriate action or initiate penalty proceedings against the employer.
What issues can arise if I issue Rent Receipts to my Retired Father Sr.Citizen who has no regular source of Income?
Dear TVS..Who owns the property? If you issue the rent receipt then how it benefits you?
I have an agreement with my Father to "rent" out a part of the Flat to me for which I pay Rent either Monthly or as an when possible from my Income.
sorry for the error in relating to you.
My Father is the Owner of the Property and SO my father will be issuing the Rent Receipts to me for occupying a portion of the Flat in Mumbai.
What will be the benefit in my HRA Calculations and is this valid claim for exemption in my IT Calculations?
I also have a standard Rent Agreement (not stamp Paper but on Ordinary Paper) duly witnessed by 2 neighbours. Is this Ok?
Dear TVS..Yes you may do so. You may also have to provide your Father's PAN number to your employer while submitting the proofs. Also, your father has to show this as rental income while filing his tax return (if any).
tHANKS Sreekant Reddy.
So nothing illegal on that score I presume.
If my employer has forgot to include my HRA in the Form-16,how can I get the refund for the HRA?
Can I include it in my ITR and get a refund for it?
Dear Aman,
If you live on rent and have made rent payments, you can claim deduction on House Rent Allowance at the time of filing your return.
HRA Exemption is Minimum of below 3 :
a. Rent Paid (less) 10% of Basic Salary
b. 40% of Basic Salary (50% of basic salary in case of Mumbai, Delhi, Chennai and Kolkata)
c. HRA Received