FORM NO. 12BB
(See Rule 26c)
Declaration by employee for claiming tax benefits for House Rent Allowance (HRA), Leave Travel Allowance / Concession (LTA / LTC), interest paid on housing loans and other tax saving deductions.
Earlier there was no standard format required by salaried employees to disclose their investment details to their employers. The Central Board of Direct Taxes (CBDT) has introduced a new Form 12BB. This form, applicable from June 1, 2016, needs to be submitted to your employer and will be used to declare your investments and claim tax deductions under HRA, LTA, Section 80, interest paid on home loans etc. Use this page to generate your Form 12BB and submit to HR of your company.
Questions and Answers on Form 12BB
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The following deductions can be claimed by salaried taxpayers through form 12BB:-
- House Rent Allowances (HRA)
- Leave Travel Allowance(LTA)
- Interest on Home Loan
- All the deductions under chapter VI-A: Sec 80C to Sec 80 U.
The documents required to proof the details of tax deductible investments and expenditure must be attached with the Form 12BB.
Followings are the few examples:-
- You need to furnish rent receipt for House Rent Allowances.
- You need to furnish amount and provide evidence of expenses made towards your travel for Leave Travel Allowances.
- Tax deduction for interest paid for your home loan, you had to submit an interest certificate from the concerned bank.
- You need to furnish various investments documents like LIC, Mutual Funds, F.D, etc for deductions under ch VIA.
Following is a list of expenses that is exempted under Leave Travel Allowance:-
- Travel by air- Economy class fare by the shortest route or amount paid whichever is lesser.
- Travel by rail- A.C. first class fare by the shortest route or the amount paid on travel whichever is lesser.
- Travel by Public transport other than Air & Rail –
- If route is connected with rail then A.C. first class fare by the shortest route.
- If route is not connected with rail then fair of any deluxe public transport.
- You need to furnish various investments documents like LIC, Mutual Funds, F.D, etc for deductions under ch VIA.
Section 24 (b) of Income Tax Act 1961 provides you deduction on account of interest paid on home loan installment. As per this sec, if your property is let out (i.e. given on rent) then you can claim deduction of entire amount of interest on home loan subject to maximum loss allowed from a house property is Rs.2,00,000.
If your property is self-occupied (i.e. used for own accommodation), then maximum interest on home loan allowed as deduction will be Rs.2,00,000.
Chapter VIA of income tax act 1961 contains all the investment and expenditure details which will help you in lowers your taxable income, which therefore lowers your tax liability. The aggregate amount of deductions under Chapter VIA cannot exceed the Total Income of the assessee.
It contains a bunch of sections like Sec.- 80C, 80CCC, 80CCD, 80CCF, 80CCG, 80D, 80DD, 80DDB, 80E, 80EE, 80G, 80GG, 80GGA, 80GGB, 80GGC, 80IA, 80IB, 80IC, 80ID, 80IE, 80JJA, 80JJAA, 80LA, 80P, 80QQB, 80RRB, 80TTA, 80U. Click here to know more about these sections.