Form 12BB: Investment Declaration

Author
By Hiral Vakil on March 8, 2019

Form 12BB is an Investment Declaration of a Financial year. Every year an employee submits Form 12BB to an employer at the beginning of the year. Investment declaration is required by an employer for a correct calculation of TDS on salary income.

Earlier there was no standard format for investment declaration. But, now as per New Income Tax Rule 26C, the employees are required to furnish the details of tax deductions to the employer in Prescribed Form 12BB. New Rule 26C is applicable from 1st June 2016.

Other important ITR documents include Form 16, Form 26AS, Form 10BA, Form 15G & Form 15H.

Sample Form 12BB

Sample-FORM-12BB_1

What are the details required to file Form 12BB?

Following are the details required to file Form 12BB:

  • House Rent Allowance(HRA): You need to provide the name, address and the Permanent Account Number(PAN) of the landlord/landlords where the aggregate rent paid during the previous year exceeds rupees One Lakh.
  • Leave Travel Concession or assistance: Evidence of expenditure incurred on travelling.
  • Interest Deduction under the head “Income from House Property”: Name, address and permanent account number of the lender. For example, Interest paid to the lender or financial institution.
  • Deduction under Chapter VI-A(Section 80C-80U): Evidence of investment or expenditure. For example, Investment made in PPF, ELSS, Fixed Deposits etc or any expenditures incurred like a medical insurance premium, life insurance premium, children’s education etc.
Generate Form 12BB
Enter details of tax saving investments, exempt allowances and share it with your employer in a jiffy.

FAQs:

1. Is it mandatory to submit Form 12BB?

No. It is not mandatory to submit the Investment declaration in Form 12BB. However, if you do not submit the same to your an employer, than he will deduct excess TDS on your total salary without allowing you any tax deductions. So it is highly advisable to submit your investment declaration in Form 12BB to your employer.

2. When do I have to submit Form 12BB?

Generally, employers ask for a declaration in the month of April i.e, at the beginning of the financial year to calculate TDS for the year. If you join a new job then at that time you need to submit Form 12BB. Employees may submit the investment proofs later on during the financial year.

3. What if I don’t submit Form 12BB on time to my employer?

In case you don’t submit form 12BB to your employer within a prescribed time, the employer will not be able to give you the benefit of deductions. As a result, excess TDS will be deducted from your salary. Do not worry you can claim a refund of such excess TDS while filing your income tax return.

4. Do I have to submit Form-12BB to income tax department?

No. You need to submit form 12BB to your employer. This form will allow the employer to calculate and deduct accurate TDS from your salary.