Form 12BB : Investment Declaration

Form 12BB (Investment Declaration) is an essential document for a salaried person. It is basically a disclosure of all their tax-saving investments in that particular Financial Year. Form 12BB is required by the employer for an accurate calculation and deduction of TDS on salary income. It needs to be submitted at the beginning of every financial year.

For example… Mr. Yash has invested 3 lakhs in tax saving schemes in this FY 2019-20. So, he has to file his form 12BB disclosing all the details of those investments to his/her employer between 1st April 2019 to 30th June 2019. While He can submit all evidence of those investments between 1st January 2020 to 31st March 2020. This practice is advisable for an accurate TDS deduction.

Sample Form 12BB – Investment Declaration

Download Sample from ITD
Form 12BB
Download the draft of Form 12BB
Download
Form 12BB
Download the draft of Form 12BB
Download

Supporting Documents – Form 12BB

FAQs

Is it mandatory to submit Form 12BB?

No. It is not mandatory to submit the Investment declaration. 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.

When do I have to submit Investment Declaration?

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.

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.

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.

Got Questions? Ask Away!

  1. Hey @TeamQuicko

    Thanks for the blog! Just one quick question - Why do we have to report a quarterly breakdown of Dividend Income under IFOS?

    Thank you!

  2. I had received dividend recently but I had noticed that TDS had been deducted. any idea as to why has it happened and is there a way I can claim this TDS?

  3. Hey @HarshitShah

    After the introduction of Budget 2020, dividend income is now taxable in the hands of the shareholder; and is also subject to TDS at 10% in excess of INR 5000 u/s 194 & 194K. Foreign Dividend is taxable at slab rates. TDS is not applicable to such dividends. The taxpayer should report such income under the head IFOS in the ITR filed on the Income Tax Website.

    Hope this helps!

  4. Hi @ameyj

    The amount of TDS deducted shall reflect in your Form 26AS only and it will also reflect the name of the deductor.
    Using the name of the deductor you can find out on which share you have received the dividend and you can also cross-check the same in your bank statement.

    Yes, you are right, TDS is to be deducted when the dividend paid exceeds 5000 INR in a financial year. However, the 5,000 INR limit pertains to all the dividends an individual gets in a year, or the total dividend per shareholder that a company pays out in a year, is left to interpretation, and hence registrars and share transfer agents (RTA) are not taking any chances and are deducting TDS even on small amounts.

    Hope this helps

  5. Hi @TeamQuicko

    Consider that I have 10 shares each of 10 different Indian companies. Each of the 10 companies are declaring a dividend of INR 100 before the FY ends. Now I will be recieving 1000 as dividend from each company, thereby a total of 10,000.

    The 5,000 dividend limit, is it applicable to each company / total dividend recieved by me in a year. If it is applicable to each company, then I would not attract TDS of 10% for dividend.

    Also pl clarify, how would the company B know that I have got shares of Company A,C,D,E so on…

  6. Hey @Abdul_Kaleem_shah

    As per sec.194 of income tax act, TDS liability will arise when the amount of such dividend or the aggregate of the amounts of such dividend distributed or paid or likely to be distributed or paid during the financial year by the company to the shareholder, exceeds 5000 Rs.

    Here, the term company not includes aggregate companies and hence limit of 5000 Rs. should be applicable to each company.

    Here, you can read below article covering TDS on dividend income:

    Since, it is purely based on interpretation and ambiguous as opinion vary from experts.

  7. Hey @TeamQuicko

    I tried to file ITR-3 via Quicko’s integration with Zerodha. While filing the ITR, I got an option to switch to the New Tax regime to save additional taxes.
    Since I had some turnover from intraday and FnO (speculative/ business), am I eligible to switch to the new regime through Quicko while filing?
    How do I fill the Form 10-IE? If I haven’t filled the form, would the portal preent me from filing returns altogether?
    Also, once I get rebate (if opted for new regime) / pay dues (if opted for old regime), do I need to go through the hassles of replicating it on the new ITR portal (i.e manually answering the schedule sections)?

    Kind regards

  8. Hi @ChinmayB,

    Yes, you can opt for the new tax regime. However, keep in mind in case a taxpayer has business income and they opt for the new tax regime, they can switch to the old tax regime only once.

    If you opt for the new tax regime, you need to file Form 10-IE before filing the ITR

    Here’s how you can file the Form 10-IE

    When filing your ITR through Quicko, you do not need to enter details on the new ITR portal, since Quicko is a ERI (e-return intermediary) registered with the Income Tax Department.

    Note: ITR filing will be enabled on Quicko in the coming week. So stay tuned for more exciting features!

Continue the conversation on TaxQ&A

11 more replies

Participants