Every December to February, employers ask their employees to submit income tax investment proofs along with LTA/HRA proofs. The problem there is no standard format for the same. Each employer has different set of forms and asks for different investment proofs. To overcome this and to give uniform format across organizations, Income Tax Department has notified a new Form 12BB effective June 1, 2016.
The form covers the following tax exemptions:
- House Rent Allowance (HRA)
- LTA (Leave Travel Allowance) / LTC (Leave Travel Concession)
- Interest payable on Home Loan u/s 24
- All Tax Deductions under Chapter VI A which covers sections like 80C, 80CCC, 80D, etc
How to Fill Form 12BB?
Fortunately the form 12BB is simple and asks for details you were already providing to your employers every year. Here is a brief guideline on how to fill it.
For HRA Exemption:
House Rent Allowance is exempt under section 10(13A) of income tax Act subject to certain conditions. The form asks for amount of Rent paid, name and address of the landlord and PAN number of landlord in case the annual rent paid is more than Rs one lakh. You need to furnish rent receipts as documentary evidence.
Also Read: 7 FAQs on Tax Exemption on HRA
LTA / LTC Exemption:
You need to provide all the tickets and bills as documentary evidence to claim LTA/LTC exemption. The form 12BB just asks for the total amount claimed under LTA.
Interest payable on Home Loan:
You need to provide Name, Address and PAN number of the lender along with the interest paid for the year. The loan providers are split into 3 categories Financial Institutions, Employer and others. Here others cover loan from friends/family or individuals. For evidence you can submit loan certificate from lender and completion certificate of the house.
Deduction under Chapter VI-A
This is split in two parts. Part A asks for amount and document evidence for Section 80C, 80CCC and 80CCD. Part B covers all other sections like 80E, 80G, 80TTA, etc.
Also Read: Best Tax Saving Investments u/s 80C
Form 12BB: Some Pointers
The form is applicable when you would submit your proofs to your employer for FY 2016-17. Last financial year is not impacted in any way.
This form is only required when you claim tax exemptions through your employer.
Apart from LTA/LTC all other above mentioned tax exemptions can be claimed directly while filing income tax return. The form 12BB would not be required for the same. All you need is to enter the correct investment amount under different sections.
You need not attach proofs with your ITR but need to keep it safe with you. While assessing you ITR, assessment officer can ask for these proofs at a later stage.
4 thoughts on “Form 12BB – New Form to claim Tax Exemptions by Salaried Employees”
Hello sir, some of our Psu employees are getting full refund of income tax paid on the previous year. Please guide me is it possible. If so on what basis it is claimed. More over how to claim refund of tax which is deducted from EL encampment. Thank you.
The income tax refund happens only if excess tax was paid or deducted. To get that you need to file your ITR.
EPS 1995 Minimum pension of Rs.1,000/- While filing ITR whether this income is to be shown under the head ” Salaries” or to be shown under the head ” income from other sources”
2. Interest on Post Office Savings Bank Account Exemption up to Rs.3,500 ( in an individual account) and Rs.7,000/- ( in a joint account ) u/s 10(15) (i) is a seperate one or it is one of the component u/s 80TTA – Deduction up to Rs.10,000/-
1. EPS should be shown in “Income from other sources” as there is no employee/employer relationship.
2. Post Office Savings account exemption is in addition to Section 80TTA