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.

(1st April 2018 to 31st March 2019)

Employee Details

House Rent Allowance (HRA)

(If you do not have your rent receipt click here to generate HRA rent receipt.)

e.g. HRA rent receipt

+Add

Note: Permanent Account Number shall be furnished if the aggregate rent paid during the previous year exceeds one lakh rupees.

Leave Travel Allowance / Concession (LTA / LTC)

Mention proof that you will submit

+Add

Deduction of Interest on Housing Loan

Mention proof that you will submit

Particulars of Lender

Tax Saving Deductions
(A) Section 80C, 80CCC and 80CCD
Mention proof that you will submit

+Add

Mention proof that you will submit
Mention proof that you will submit
(B) Other sections (e.g. 80E, 80G, 80TTA, etc.) under Chapter VI-A.
Mention proof that you will submit

+Add


Questions and Answers on Form 12BB

Employees are required to provide certain information to their Employers, so as to claim certain exemption under Income Tax and compute their correct tax liability. Earlier there was no standard format. Now, Income tax department has introduced the Form 12BB to disclose investments and other details to their employers. 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.
If the total income of an employee is above the exemption limit, Employers deduct TDS from the salary of their employees. In order to avoid/reduce TDS deduction, employees makes investments in different tax saving scheme. Form 12BB act as a single entity that you can use to declare your investments and claim tax deductions under HRA, LTA, Section 80, and interest paid on home loans under Section 24 of the I-T Act.
It's Simple. You can prepare your Form 12BB from myITreturn portal.
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Usually employer asks you to declare your tax-saving investments for the year to be able to deduct tax accordingly from your monthly salary. In the beginning of the financial year, you have to just make an estimate of the investments that you intend to make. At the end of financial year employees are required to submit Form 12BB to their employers along with documentary evidence as a proof of all tax deductible expenditure and investment.

The following deductions can be claimed by salaried taxpayers through form 12BB:-

  1. House Rent Allowances (HRA)
  2. Leave Travel Allowance(LTA)
  3. Interest on Home Loan
  4. 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:-

  1. You need to furnish rent receipt for House Rent Allowances.
  2. You need to furnish amount and provide evidence of expenses made towards your travel for Leave Travel Allowances.
  3. Tax deduction for interest paid for your home loan, you had to submit an interest certificate from the concerned bank.
  4. You need to furnish various investments documents like LIC, Mutual Funds, F.D, etc for deductions under ch VIA.
Yes, it is mandatory for employees to submit proofs along with form 12BB.
Leave Travel Allowance or LTA is the amount paid by an employer to an employee for travelling either himself or with family within the country. Section 10(5) of income Tax Act 1961, deals with the exemption under LTA. The exemption is restricted to only travel cost incurred by the employer. Other expenses like food expenses, shopping expenses and entertainment expenses are not exempt under this.

Following is a list of expenses that is exempted under Leave Travel Allowance:-

  1. Travel by air- Economy class fare by the shortest route or amount paid whichever is lesser.
  2. Travel by rail- A.C. first class fare by the shortest route or the amount paid on travel whichever is lesser.
  3. Travel by Public transport other than Air & Rail –
    1. If route is connected with rail then A.C. first class fare by the shortest route.
    2. If route is not connected with rail then fair of any deluxe public transport.
  4. 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.