Form 12BB – New Form to claim Income Tax Deductions by Employees


Income Tax Declaration-2016-17

At the financial year end, you need to provide supporting Investment Proofs for these investments that you have specified in IT declaration.

Download: Form 12BB – New Form to claim Income Tax Deductions by Employees




Tax deductions under Section 80C, Section 80CCC, and Section 80CCD, as well as other sections like 80E, 80G, and 80TTA etc. that come under Chapter VI-A of the IT Act for the FY 2016-17

TDS Circular issued by our Taxation Department vide their Circular Letter No.2016-17 / 71 dated 19.09.2016 (copy enclosed) wherein detailed information about the introduction of Form No. 12BB pertaining to declaration of investment by employees seeking declaration/exemption/relief in salary, has been clearly explained.

We bring to your kind notice the details contained in CBDT circular pertaining to Form No. 12BB (copy enclosed for ready reference) which has become applicable from 01.06.2016:

i)     House Rent Allowance (HRA): With Form No. 12BB, an employee can claim any HRA tax deductions under Section 10 (13A) of the I-T Act. Along with Form No. 12BB, an employee will need to provide the relevant rent receipts for this deduction. The employee will also need to submit the name and address of the landlord. In the event the aggregate rent paid exceeds Rs 1 lakh, employee will also need to submit the Permanent Account Number (PAN) of the landlord.

ii)   Leave Fare Concession (LFC): With Form No. 12BB, an employee needs to furnish amount and provide evidence of expenses made towards his travel. Unlike in the past, it is now mandatory to provide proof of all travel expenses in the form of receipts of such claim.

iii)  Interest payable on home loan under Section 24: In the past, if an employee had to seek tax deduction for interest paid for his / her home loan, he/she had to submit an interest certificate from the concerned bank. Now, all that needs to be done is to submit the interest certificate along with Form No. 12BB to claim deductions under Section 24 of the I-T Act. To fill up form No. 12BB correctly, it has to be ensured that the employee has the interest amount paid, name and address of the lending bank or non-banking financial company (NBFC), and PAN number of the lending bank with an employee.

iv)   All tax deductions under Chapter VI-A: All tax deductions under Section 80C, Section 80CCC, and Section 80CCD, as well as other sections like 80E, 80G, and 80TTA, come under Chapter VI-A of the IT Act. For deductions, employees need to fill up Form No. 12BB and provide details and proof of investments and expenses.




Download List of Documents

Documents to be submitted with declaration for claiming deduction


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