Income Tax Department recently launched new Form 12BB. This is the single form to declare HRA, LTA, Section 80, and interest paid on home loans under Sec.24 of IT Act.
All salaried know that at the start of a financial year or while you join the organization newly, then you have to declare the provisional list of products where they want to invest for tax saving. Usually, this will be available on your company’s portal. For example, you have to declare the amount you pay towards life insurance, health insurance, the fee payable to your kid’s, PPF, ELSS or home interest and principal you will pay.
Employers need this information to arrive at your net taxable income after these investments, expenses like HRA and other tax saving options. Based on this, employers calculate the tax payable from you. This tax liability of your’s will be deducted from your salary on the monthly basis and deposited with IT Department.
As I said above, this is just a PROVISIONAL list. You are not at all obliged to invest that much. Many do so much research while declaration this provisional declaration at the start of financial year. However, do remember that based on your actual investment during the financial year, your tax liability will be fixed.
As the financial year-end approaches, like in the month of January or December, your employer asks you to submit the income proof. Based on this actual proof, they recalculate the income tax liability. Finally, start to deduct the tax deduction up to the month of March.
What are the scenarios you will find in this case?
# Your actual investment is less than a provisional declaration.
Your employer calculates the actual tax liability before the financial year-end and starts to deduct tax based on the actual investment. In such situation, you may end up in paying more tax and your take home salary will drop during these last months of the financial year.
However, if you invest at the last minute, like at the end of March, then your tax liability may go down. However, your employer may already deducted higher tax. In that case, you have to file IT return at the end of the financial year and get it refunded from IT Department.
# Your actual investment is equal to a provisional declaration.
Your taxable income will be same as per earlier declaration. So based on this your employer may be deducting tax and you may not feel the pinch of more TDS.
# Your actual investment is more than the provisional declaration.
In such situation, your employer will deduct more tax. Hence, you have to file IT return on your own at the end of the financial year and claim the refund of tax.
As of now, there was no standard form or format to declare all such deductions. However, effective from 1st June, 2016, to claim income tax deductions, you must fill the newly launched Form 12BB. Along with that, you have to provide the proof of such investments or expenditure for deductions.
What are the deductions you can claim in Form 12BB?
#House Rent Allowance (HRA)-You can claim HRA exemption under IT Act of section 10 (13A). To claim HRA, you have to documentary evidence like rent receipts. Along with receipts, you have to submit the below information in Form 12BB.
You can claim HRA exemption under IT Act of section 10 (13A). To claim HRA, you have to documentary evidence like rent receipts. Along with receipts, you have to submit the below information in Form 12BB.
Note-Permanent Account Number (PAN) shall be furnished if the aggregate rent paid during the previous year exceeds one lakh rupees.
# Leave Travel Allowance (LTA)-Now it is mandatory to submit the travel expenditure proof if you want to claim deductions.
Now it is mandatory to submit the travel expenditure proof if you want to claim deductions.
# Deduction of interest under the head “Income from house property”–
Earlier to claim deductions of interest you paid towards your home loan under Sec.24 of IT act, you used to submit the interest certificate from the bank/financial institution with the total interest and principal paid/due for the FY. However, from now onward, along with this certificate you have to submit below information also.
# Deduction under Chapter VI-A–
Deductions under Chapter VI-A means from Sec.80C to Sec.80TTA. You have to provide the details of such deductions and also the proof need to be submitted.
By bringing in the Form 12BB, IT department streamlined the claiming of deduction under one roof. Hope this information is helpful for all.
Remember below points-
Download the Form 12BB.
EPF Scheme 2026 explained fully: EPF withdrawal, EPS pension, and EDLI insurance changes with examples,…
Chasing financial freedom? Do health, time, relationships and contentment matter just as much? Sadly, we…
Your "safe" SIPs, SGBs, PPF, or Index Funds are secretly sabotaging your wealth. Peltzman Effect…
Thinking your retirement plan is foolproof? Why LUCK - not asset or fund selection or…
Nifty 50 Index Funds Vs Active Large Cap Funds — Can we really compare them…
Should you pick Nifty 500 Multicap 50:25:25, Nifty 500, or Nifty LargeMidcap 250 Index Fund?…
View Comments
Can I claim HRA exemption (having proper documents of rent aggrement and rent receipt etc. )while living with parents in their house?
Dear Uttam,
Yes.
Hello Sir!
Actually one of my colleague's information in form 12BB is wrongly filed.
More of the TDS is deducted than actual. It's the mistake from the part of third person who interchange the details of two different employees. Notice from income tax came. Kindly provide the remedy please
Dear RV,
You have to revise the IT return and rectify the same.
Hello Sir,
I wanted to know that me and my Husband have a joint home loan, so can we both claim under income from Housing loan ..please help to know
Dear Aarti,
Yes, you can claim so but in the proportionate equal to the ownership in the property.
Dear Basu,
I am a PSU employee. I have two queries:
1) Do I have to add DA(Dearness Allowance) while calculating HRA exemption along with Basic salary?
2) My employer didn't consider HRA exemption for FY 16-17. Now, I want to avail the same while filing IT returns online but couldn't find where to enter it. How to avail it?
Rahul-1) Yes, salary for purpose of HRA is Basic+DA.
2) Refer instruction provided by IT Dept.
Thank you Basu.
Hi sir, old tell who will retain this form 12bb and whether we had to submit hard copy to it IT department
Ashwani-It is the provision declaration, which you have to submit to employer.
Hello Sir,
Based on your response to Aish's comments, can you provide a link or a legal document explaining that declaration by the landlord will suffice?
My employers have provided the 12BB amendment copy. But, it does not talk about the declaration part.
Ganesh-I already replied to your comment in FB.
where do I mention income from house property and income from other sources in form 12bb?
Muthu-Please refer above post. I already mentioned what type of details you can mention in Form 12BB. Rest all you have to declare while filing IT return.
Hello Sir,
I have declared in the month of april'16 that i will be doing so and forth investments in 2016. but later on I want to invest into some other investment avenue (other than what i declared in investment form). will that be fine because at the end of the form its written "The above particulars of investments and deductions made by me for Financial Year 2016-2017 are true to the best of my knowledge and belief. I am also aware that the Company will be considering the above details in utmost good faith based on the details provided by me and that I am personally liable for any consequences arising out of errors, if any, in the above information.
I am also aware that any person making a false statement / declaration in the above form shall be liable to be fined and prosecuted under section 277 of the Income Tax Act."
I am confused kindly help.
Ullas-You can declare but can plan as per your finance. During financial closure, your employer will deduct the TDS based on proof you provided at the end.
Hi,
How can I get Bank PAN number? So that I can write at the section: deduction of interest.
Arindam-Bank PAN number not required. Bank just deduct TDS on behalf of you.
Hi Basvaraj,
If Bank PAN number not required, then whom PAN number need to enter in the place of Lender PAN number.
Regards,
Uma Ulisi
Uma-Using Form 26AS, you can easily find the banker's PAN number (deductor).
Bank PAN is not listed in 26AS
Npee-Contact the bank for the same.
Hello Basavaraj,
I have a property which is co-owned with my wife and we have rented it out. Loan payment is done through my bank account and I have been claiming exemption for the home loan interest.
Is it OK to show the rent income on my wife's name as she is the co-owner or do I need to show the same as my income only?
Gaurav-You can show the rental income based on the % of property you both owned.
Does that mean 50% as my wife's income and 50% as my income? This is the only property we have rented out and there is no other co-owner involved.
Gaurav-Yes, you are right.