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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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.
Hi,
There is a column if form 12BB in HRA section that asks for address of landlord.
Will it contain the address of rented accommodation as mentioned in rent receipt or the landlord permanent address?
Regards
Dear Vishal..I believe it is permanent address of Landlord.
Hi Srikanth,
I have submitted very few documents with form 12bb to my employer. Even HRA also not submitted.
I have made some more investments after 12bb submission.
Is it okay to submit HRA and other claim while return filing?
Yes dear Praveen , you may do so.
Kindly read : IT declaration & investment proofs.
Hi Sreekanth,
I need some clarification regarding LTA,
I have travel bill for june 2016 but i didn't claim in 2016 calender year , Can i claim that in jan 2017?
In this Jan 2017 i am planning another journey so i was thinking if i can claim both the travels in this Jan 2017. Please clarify is it possible?
Regards,
kishore
Dear Kishore,
Kindly note that Exemption is allowed for only two travels within a block of four years. The current block is between 2014-2017. If the individual doesn’t take advantage of the exemption within this block, they can carry it over to the next block.
Where to include the Following while submitting the Form 12BB
10(14)
Transport Allowance granted to an employee to meet expenditure on commuting between place of residence and place of duty
Up to Rs. 1,600 per month or 19200
Medical reimbursement of bills for Rs.15000 Under section
Dear VIGNESWARA Rao,
You may just submit the bills to your employer and they will consider for respective allowances.
Kindly check for these amounts when you receive Form 16.
Dear Sreekanth,
I have made deposit of 60000 in Tax saver FD in the month of jan 2017 and i am going to show the proof to avail tax benefit , last date for submitting the proof is 23rd of jan 2017 in my company,
Suppose if i do another tax saver FD in the month of feb 2017 or march 2017 , Can i use the second FD while filing the IT return to claim the tax paid .
Regards,
kishore
Dear kishore ..Yes, you may do so (subject to ceiling limit u/s 80c).
Hi,
Need Help!
To avail the exemption benefit of 1.5L, I made the following investments
1 - Life Insurance
2 - ELSS
3 - SIP
4 - PF (which is auto deducted by the employer)
Now except the Life Insurance all the other investment made is online and I don't have any clue as what proof to provide as to avail the exemption?
Does ELSS & SIP is under 80C?
And what about the PF? that's also under 80C? and do i need to mention about the PF on Form 12BB.
Kindly help..
Tabraiz.
Dear Tabraiz,
Kindly note that SIP is a mode of investment and not a financial product.
You can get Mutual fund statement for ELSS and can claim tax deduction u/s 80c. (You may ask your online service provider to share the MF statement).
Yes, PF can be claimed u/s 80c and can be mentioned in Form 12BB.
Read: IT declaration & investment proofs!