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What is a Form 12BB and when to submit it for salaried individuals?
Form 12BB helps claim deductions like HRA, LTA, and home loan interest—submit it to your employer to reduce TDS.
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Purpose of Form 12BB
Form 12BB is a declaration that salaried workers submit to their employer so they can claim tax deductions on investments and expenses. It was brought in by the CBDT to simplify filing deductions such as HRA (house rent allowance), LTA (leave travel allowance), investment in Section 80C, and interest on home loan. Its timely submission guarantees your employer deducts lower TDS from your salary.
Form 12BB is a declaration that salaried workers submit to their employer so they can claim tax deductions on investments and expenses. It was brought in by the CBDT to simplify filing deductions such as HRA (house rent allowance), LTA (leave travel allowance), investment in Section 80C, and interest on home loan. Its timely submission guarantees your employer deducts lower TDS from your salary.
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When and where to file it
Form 12BB is primarily sought by employers at the close of the financial year, that is, from January to March. Some companies might ask for it earlier, in December. You have to provide it to your payroll department or HR department with supporting documents—like rent receipt, LIC premium receipt, or interest certificate. It is not filed with the income tax department but must be provided to your employer for the correct TDS calculation.
Form 12BB is primarily sought by employers at the close of the financial year, that is, from January to March. Some companies might ask for it earlier, in December. You have to provide it to your payroll department or HR department with supporting documents—like rent receipt, LIC premium receipt, or interest certificate. It is not filed with the income tax department but must be provided to your employer for the correct TDS calculation.
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Deductions you may claim through Form 12BB
You can avail investment and expenses under various sections. They are Section 80C (LIC, ELSS, PPF), 80D (mediclaim), 24(b) (home loan interest), HRA (rent paid), LTA (railway tickets), and donations under Section 80G. Under HRA, you are required to produce your landlord's PAN if rent is more than ₹1 lakh per year. In the case of home loans, you are required to submit a certificate from your banker showing the breakdown of principal and interest repaid.
You can avail investment and expenses under various sections. They are Section 80C (LIC, ELSS, PPF), 80D (mediclaim), 24(b) (home loan interest), HRA (rent paid), LTA (railway tickets), and donations under Section 80G. Under HRA, you are required to produce your landlord's PAN if rent is more than ₹1 lakh per year. In the case of home loans, you are required to submit a certificate from your banker showing the breakdown of principal and interest repaid.
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What if you forget to submit it
If you fail to submit Form 12BB or do not attach valid proofs, your employer will not consider these deductions during deductions of TDS. This will lead to higher monthly tax deduction from your salary. Even though you can claim these deductions while submitting ITR later, you have to wait and request a refund from the income tax department later. Submitting Form 12BB in due time avoids delayed tax planning and bad monthly cash flow.
If you fail to submit Form 12BB or do not attach valid proofs, your employer will not consider these deductions during deductions of TDS. This will lead to higher monthly tax deduction from your salary. Even though you can claim these deductions while submitting ITR later, you have to wait and request a refund from the income tax department later. Submitting Form 12BB in due time avoids delayed tax planning and bad monthly cash flow.
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How to fill out the Form
Form 12BB is a simple form where you have space to fill the amount claimed and proof details filed. You have to list all deduction heads, place the amount, and enclose supportive documents. For example, if you are claiming ₹1.5 lakh under Section 80C, mark the instruments like PPF, ELSS, etc. If rent paid exceeds limits, place landlord's name, address, and PAN. Verify amounts with receipts to avoid future mismatch.
Form 12BB is a simple form where you have space to fill the amount claimed and proof details filed. You have to list all deduction heads, place the amount, and enclose supportive documents. For example, if you are claiming ₹1.5 lakh under Section 80C, mark the instruments like PPF, ELSS, etc. If rent paid exceeds limits, place landlord's name, address, and PAN. Verify amounts with receipts to avoid future mismatch.
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Maintain records for future examination
Even though Form 12BB is submitted to your employer, the documents can be called for by the taxation department subsequently at the time of assessment. Keep a scanned copy of your submitted form and all supporting documentation for at least six years. In the event of TDS being incorrect or mismatch in your ITR, these will be invaluable in aiding your tax position. Filing it accurately reduces the chances of notices or delayed refunds.
Even though Form 12BB is submitted to your employer, the documents can be called for by the taxation department subsequently at the time of assessment. Keep a scanned copy of your submitted form and all supporting documentation for at least six years. In the event of TDS being incorrect or mismatch in your ITR, these will be invaluable in aiding your tax position. Filing it accurately reduces the chances of notices or delayed refunds.
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