Form 12BB and why is it important for Income Tax Declaration.
Effective from June 1st 2016, the Form 12BB has been mandated by The Central Board of Direct Taxes (CBDT) as a universal format that all Salaried Employees need to submit to their Employer as part of the Income Tax filing process. The Form 12 BB will henceforth act as a single entity that employees can use to declare their investments and claim tax deductions under HRA, LTA, Section 80 and interest paid on Home Loans under Section 24 of the Income Tax Act. By submitting this form along with adequate proof documents employees can claim Income Tax deductions under the following heads:
- House Rent Allowance (HRA)
- Leave Travel Concessions or Assistance (LTC < A)
- Deductions of Interest paid on Home Loans
- Deduction under Chapter VI A that includes expense deductions under various sections such as Section 80C, Section 80CCC, Section 80CCD and other sections including 80E, 80G, 80TTA etc.
Whether Pensioners have to submit this form?
Yes. They have to submit this Form 12BB, if they are claiming any of the abovesaid deductions.
Whether employers and Drawing Officers are can accept the deductions without getting the Form 12BB?
No. The employers and Drawing Officers have to collect the Form 12BB from the employees with proper evidences.