Download Form 12BB to claim 80C, HRA, LTA & other Deductions

Several Income Tax Deductions are allowed to Salaried Employees for certain types of Investments and Expenses. The employee is required to furnish details and evidence of such investments and expenses to his employer to claim such income tax deductions.

Till now, there was no preset format in which such a declaration could be furnished by the employee to his employer for claiming such a deduction. However, the Income Tax Dept has now released Form 12BB which would be required to be furnished for claiming Income Tax Deductions. This new Form 12BB is applicable from 1^st June 2016.
How to submit Form 12BB
The Employee would be required to submit Form 12BB to his employer for claiming the following:-
For claiming the above mentioned deductions, the employee would be required to mention the following particulars and attach the necessary evidence for the same.

S. No.	Nature of Claims	Evidence or Particulars
1	House Rent Allowance	Name, Address and PAN No. of the Landlord where the aggregate Rent paid during the year exceeds Rs. 1 Lakhs
2	Leave Travel Allowance	Evidence of Expenditure
3	Deduction for Home Loan	Name, Address and PAN No. of the Lender
4	Section 80C and other Deductions	Evidence of Investment or Expenditure

Apart from mentioning the above mentioned details, the employee would also be required to mention:-

1. Name and Address of the Employee
2. PAN No. of the Employee
3. Financial year for which the Form is being submitted
4. Date on which the declaration is being submitted
5. Designation of the Employee
6. Signature of the Employee

The Form 12BB can be downloaded from here:-

Reason for Introduction of Form 12BB

Almost all employees claim one or more of the above mentioned deductions. For claiming any one or more of the above mentioned deductions – they are required to furnish proof of the same to their employer.
Till now, there was no standard process to collect all the proofs and information regarding the various deductions. With the introduction of Form 12BB, there would be a standardised process for the manner of collection of evidence and proofs for claiming such deductions.
With the introduction of this standardised Form 12BB, the income tax department expects that they would be able to plug leakages in tax evasion and tax frauds will go down.

Benefit of claiming these Deductions

These Deductions/ Exemptions reduce the total taxable income of the person and therefore the tax which is levied as per the income tax slab rates is levied at a lower rate. It is highly advisable that everyone makes use of these deductions to reduce his income tax liability.
Recommended Read

• 8 Useful Income Tax Deductions for Salaried Employees
• Computation of Income Tax on Salary

About the Author Sonu Mehla 

A Personal Finance enthusiast, Sonu Mehla is the founder of Indiantaxservice.blogspot.in
  and loves to discuss about Money related matters.

 (Author can be reached at By- Sonu Mehla Mobile- 8285910007 E-Mail- sonuandfirm@gmail.com)