Wondering what is Form 12BB in income tax. Form 12BB is a statement of claims by an employee for tax deductions under Section 192 of the Income Tax Act, 1961.
What is 12BB in Income Tax?
Introduced in June 2016 by the Central Board of Direct Taxes (CBDT), it standardises the process for employees to declare their tax-saving investments and other eligible expenses to their employers. This helps employers calculate the correct amount of Tax Deducted at Source (TDS) on salaries.
Form 12BB allows employees to claim deductions on:
To claim HRA, employees must provide details such as the landlord’s name, address, and PAN (if the rent exceeds Rs. 1 lakh annually).
Employees can declare travel expenses for claiming LTC benefits, which are exempt from tax under certain conditions.
Employees can declare the interest payable on home loans under Section 24. This allows them to claim deductions up to Rs. 2 lakh for self-occupied properties.
This includes various sections like Section 80C (investments in PPF, EPF, LIC premiums, etc.), Section 80D (health insurance premiums), and others. Employees must provide the details and evidence of these investments.
By providing this form, employees ensure that the employer deducts the correct amount of TDS, considering all eligible deductions and exemptions.
It helps in efficient tax planning as employees can keep track of their investments and expenses throughout the year.
Standardising the declaration process ensures compliance with tax laws and minimizes discrepancies during tax assessments.
Employees must fill in their personal details, provide information about the tax-saving investments, and submit the necessary proofs. The form must be submitted to the employer, usually at the beginning or during the financial year.
This is all about what is Form 12BB in income tax.
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What is Form 12bb in Income Tax?
shikhar
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2024-06-24T13:09:45+00:00 2024-06-28T21:27:31+00:00Comment
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