What is form 12bb?

Form 12BB is a form that salaried employees in India use to claim tax deductions for their investments and expenses. It must be submitted to the employer by the end of the financial year, so that the employer can calculate the amount of tax that needs to be deducted from the employee’s salary.

Benefits of Form 12bb

Here are some of the benefits of submitting Form 12BB:

  • It can help you save money on your taxes: By claiming deductions for your investments and expenses, you can reduce the amount of tax that you have to pay.
  • It can help you track your investments and expenses: Form 12BB can help you keep track of your investments and expenses throughout the year. This can be helpful for tax planning and ensuring that you are maximizing your tax deductions.
  • It can help you avoid penalties: You may be subject to penalties if you do not submit Form 12BB.

What deductions can be claimed through Form 12BB?

  • House Rent Allowance (HRA): To claim your house rent allowance, you need to provide the complete name and address of your landlord, rent receipt copies, and the PAN number of your landlord(if your total rent amount exceeds Rs. 1 lakh).
  • Leave Travel Allowance (LTA): You must add the total cost of the travel and proof of travel expense to claim the leave travel allowance.
  • Interest on Home Loan: To claim tax benefits for the interest on your home loan, you should submit actual interest you have borne along it’s certificate the lender gave you, your lender’s name, address, and PAN number in the 12BB form.
  • Deductions under Chapter VI-A: Form 12BB must be submitted along with supporting documents to claim tax deductions for expenses and investments made under Chapter VI A of the Income Tax Act.

Deduction

Supporting document

HRA

Rent receipts

LTA

Travel receipts

Home loan interest

Interest certificate from the lender

Deductions of chapter VI – A

Relevant documents

When should I submit form 12bb?

Form 12BB must be submitted to the employer by the end of the financial year. However, many employers ask employees to submit the form in January or February of the following year. The employer needs to do this in order to calculate how much tax to deduct from the employee’s salary for the whole year.

Example

Name: [Your Name] 

PAN: [Your PAN] 

Address: [Your Address]

Financial Year: 2022-23

S.no

Type of claim

Amount

Evidence

                    1   

House Rent Allowance:

  • Rent paid to the landlord:
  • Name of the landlord: Mr. X
  • Address of the landlord: 123 Main Street, Mumbai
  • PAN of the landlord: Landlord’s PAN

Rs.12,000/-

                                    

b. Mr. X

c. 123 Main Street, Mumbai

d. Landlord’s PAN

 2

Leave Travel Allowance:

  • Amount claimed: 
  • Proof of expenses:

                                               

Rs. 6,000/-

                              Travel receipts  

  3 

Interest on Home Loan:

  • Interest paid: 
  • Name of the lender: 
  • Address of the lender: 
  • PAN of the lender: 

                                                     Rs.40,000/-

                                                                     

b. State Bank of India

c. 456 Bank Street, New Delhi

d. Lender’s PAN

        4

Deductions under Chapter VI-A:

  • Section 80C: 
  • Section 80D: 
  • Section 80G: 

a. Rs.15,000/-

b. Rs. 5,000/-

c. Rs. 3,000/-

a. Contribution to EPF

b. Medical insurance premium

c. Donation to charity

Verification

I, [Your Name], son/daughter of [Your Father’s Name], certify that the information above is complete and correct.

Place: [Your City] 

Date: [Date]

[Your Signature]

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