New Form to claim Tax Exemptions by Salaried Employees : Form 12BB

New Form to claim Tax Exemptions by Salaried Employees : Form 12BB

Employers ask their employees to submit income tax investment proofs along with LTA / HRA proofs. The problem there is no standard format for the same.

Each employer has different set of forms and asks for different investment proofs. To overcome this and to give uniform format across organizations, Income Tax Department has notified a new Form 12BB effective June 1, 2016.

The form covers the following tax exemptions:

1. House Rent Allowance (HRA)

2. LTA (Leave Travel Allowance) / LTC (Leave Travel Concession)

3. Interest payable on Home Loan u/s 24

4.  All Tax Deductions under Chapter VI A which covers sections like 80C, 80CCC, 80D, etc

How to Fill the new  Form 12BB?

Fortunately the form 12BB is simple and asks for details you were already providing to your employers every year. Here is a brief guideline on how to fill it.

For HRA Exemption:

House Rent Allowance is exempt under section 10(13A) of income tax Act subject to certain conditions. The form asks for amount of Rent paid, name and address of the landlord and PAN number of landlord in case the annual rent paid is more than Rs one lakh. You need to furnish rent receipts as documentary evidence.

Claim HRA and LTA using Form 12BB

LTA / LTC Exemption:

You need to provide all the tickets and bills as documentary evidence to claim LTA/LTC exemption. The form 12BB just asks for the total amount claimed under LTA.

Interest payable on Home Loan:

You need to provide Name, Address and PAN number of the lender along with the interest paid for the year. The loan providers are split into 3 categories 

Financial Institutions, Employer and others. Here others cover loan from friends/family or individuals. For evidence you can submit loan certificate from lender and completion certificate of the house.

Home Loan Details in Form 12BB

Deduction under Chapter VI-A

This is split in two parts. Part A asks for amount and document evidence for Section 80C, 80CCC and 80CCD. Part B covers all other sections like 80E, 80G, 80TTA, etc.

Deduction under Chapter VI-A using From 12BB

Form 12BB: Some Pointers

The form is applicable when you would submit your proofs to your employer for FY 2016-17. Last financial year is not impacted in any way.

This form is only required when you claim tax exemptions through your employer.

Apart from LTA/LTC all other above mentioned tax exemptions can be claimed directly while filing income tax return. The form 12BB would not be required for the same. All you need is to enter the correct investment amount under different sections.

Download Form 12BB

 FORM NO.12BB

(See rule 26C)

Statement showing particulars of claims by an employee for deduction of tax under section 192

1. Name and address of the employee:

2. Permanent Account Number of the employee:

3. Financial year:

Details of claims and evidence thereof

Sl. No.

Nature of claim

Amount

(Rs.)

Evidence / particulars

(1)

(2)

(3)

(4)

1.

House Rent Allowance:

(i) Rent paid to the landlord

(ii) Name of the landlord

(iii) Address of the landlord

(iv) Permanent Account Number of the landlord

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

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