Form 12BB Income Tax
A summary of Form 12BB Income Tax
In this post, We will talk about Form 12BB of Income Tax. Its purpose, components, etc. Let’s look at each section in detail:
What is Form 12BB?
Form 12BB is a document you provide to your employer to request tax deductions on your wage. It contains assets, expenses, and allowances that qualify for tax breaks. Your employer uses it to determine how much tax to deduct from your pay.
Form 12BB is usually filled out when you start a new job or at the start of the year. Still, at the end of the year, you must provide documentation of the tax deductions, investments, and costs stated on the form. The employee must submit Form 12BB to their employer; they will use the provided information to calculate the tax to be deducted from the employee’s salary.
The form includes information about the employee’s name and PAN number, their salary and the amount of tax they want to deduct.
Form 12BB is needed for all salaried individuals who want to claim tax deductions for investments or expenses made during the financial year. It is an important document for employees and employers because it ensures the appropriate tax amount is deducted from an employee’s salary.
Purpose of Form 12BB
Form 12BB displays the tax benefits you requested. You must submit this form to your employer to receive your tax refund as a salaried employee. As per income tax guidelines, make sure to send it in by the end of the fiscal year.
Form 12BB Sample
Components of Form 12BB
A. Personal details
- Full Name
- Address
- PAN (Permanent Account Number)
- Financial Year (Current year: 2023-24)
B. House Rent Allowance (HRA)
If you have HRA included in your CTC and you live in rental housing, you can apply for HRA exemption by providing the details below:
- Rent paid to the landlord in full
- Your landlord’s name
- The landlord’s address
- Pan number of your landlord if the annual rent payment exceeds Rs. 1 lakh.
- Submit evidence: monthly rent receipts (free rent receipt generator) or leasing agreement.
C. LTA (Leave Travel Allowance)
To claim the LTA benefit, you must submit travel papers such as boarding permits, aeroplane tickets, or travel agent invoices to your employer.
- Eligibility: LTA is only accessible if it is included in your total compensation.
- Who Can Benefit? : You, your spouse, children, dependent parents, and siblings.
- Frequency: You can claim LTA twice within four years (current block: 2022-2025).
- Carry-Forward Option: If you only claimed one LTA in the previous block, you can apply it to the first calendar year of the new block.
- Domestic Travel Only: LTA only applies to domestic Travel, not foreign Travel. There is no accommodation expense exemption.
D. Deduction of Interest on Borrowing
This category includes a tax deduction for the interest you paid on your home loan. To do so, provide information such as how much interest you paid, the lender’s name, and their PAN number. You can also claim deductions for registration fees, stamp duty, and brokerage charges.
E. Deductions under Chapter VIA F. Verification
This is the final section of the form where you can enter your investment made under Chapter VI A of the IT Act. The following is a list of certain deductions possible under Section 80:
| Section 80C | This section is the most popular. Include your life insurance premium if you have paid it in this column. Other investments that can be included are ELSS, PPF, NSC, funded school tuition for children, and so on. |
| Section 80CCC | If you have paid towards a LIC or other insurer’s pension plan, please submit that information in this box. |
| Section 80CCD | The contributions you paid to the National Pension Scheme (NPS Tier-I account). |
| Section 80D | It covers the medical insurance premiums. |
| Section 80DD | It includes medical therapy for a dependent who is disabled. |
| Section 80E | It covers the interest paid on an educational loan. |
| Section 80EE | Include deductions for the loan you took out to buy your first home. |
| Section 80G | This includes donations given to specific organisations. |
| Section 80GG | If you do not receive HRA from your work but continue to pay rent, you can use 80GG to make tax claims. |
| Section GGA | Donations you make for rural development or scientific research will fall under 80GGA. |
| Section GGC | If you have made non-cash contributions to a political party, you can obtain the full tax deduction under 80GGC. |
| Section TTA | If you have received interest on your savings bank account, you can deduct Rs. 10,000. This deduction does not apply to interest on fixed or recurring deposits. |
| Section 80U | If a person has a disability, they can claim a tax deduction under 80U. |
We have concluded the post on Form 12BB Income Tax. Please share your views and opinions with us in the comment section below.
FAQ
1. When do I need to file Form 12BB?
Ans: Normally, employers request a declaration at the beginning of the financial year to estimate TDS computations for the entire year. Form 12BB must be submitted later, close to the end of the financial year.
2. How do I file a claim for perquisites not covered by Form 12BB?
Ans: To claim perquisites, utilise Form 12BA rather than Form 12BB. Form 12BA is a statement that shows the specifics of perquisites, additional fringe benefits or services, and earnings instead of compensation, together with their worth.
3. How can I show the additional investments that I failed to declare in Form 12BB?
Ans: Additional investments that an individual missed and did not mention in Form 12BB can be claimed when completing the return. Although excess TDS will be deducted from his salary during the year, he might receive a refund on his ITR.
