Generally, the investment declaration is supposed to be done at the beginning of the Financial Year, a taxpayer’s employer asks him/ her to declare their tax-saving investments for the year, in order to deduct tax accordingly from the employee’s monthly salary. Form 12BB is the statement of claims that are made by an employee for deduction of tax. Since 1st June 2016, a salaried employee is supposed to submit Form 12BB to his/ her employer, in order to claim tax benefits or rebate on investments and expenses.
Form 12BB is supposed to be submitted by the end of the year. This form is applicable for all the salaried employees. Using this form the employees have to declare the investments that they have made during the year. Documentary evidence of these investments and expenses have to be provided at the end of the financial year as well.
Form 12BB can be generated for the following Tax saving investments and expenses: –
House Rent Allowance: The rent that is paid to the landlord along with the name, address and PAN of the landlord.
Leave Travel Concessions or Assistance: As per the salary package the applicable Leave Travel Concessions or Leave Travel Allowance.
Home Loan Interest: Interest payable to the lender along with the name, address and the PAN of the lender.
Deductions under Section major sections like 80C, 80CCC, 80CCD and 80D
- Section 80C: Premium that is supposed to be paid for life insurance and/or investments to be made in ELSS funds, PPF, NPS and/or school tuition fees for children, etc
- Section 80CCC: Premium that is supposed to be paid for annuity plan of LIC or any other insurer
- Section 80CCD: Additional contributions made to NPS
- Section 80D: Premium to be paid for the medical insurance
Deductions under other Sections like 80E, 80G, 80TTA
- Section 80E: Interest to be paid on education loan
- Section 80G: Donations to be made to specified organisations
- Section 80TTA: Interest income earned from savings bank account
An employee is supposed to submit this form to his/ her employer once they have mentioned all the above-mentioned details on the form.