Importance of Form 12BB while filing Income Tax Return

IMPORTANCE OF FORM 12BB

 

What is Form 12BB?

Form 12BB is a document used in India by salaried individuals to claim tax deductions for various expenses. It is a declaration form that is used to claim deductions under Sections 80C, 80D, and other sections of the Income Tax Act.

The form is to be filled out by the employee and provided to the employer along with proof of the expenses incurred. The employer then uses this form to file the TDS statement correctly. It is a certificate specifying the nature of the expenditure and the amount of tax benefit the employee is claiming under various sections of the Income-tax Act.

This form is to be submitted along with the salary statement at the time of filing the income tax returns.

 

Investment Declaration Guide:

Investment declaration is the process of declaring the investments you have made during the financial year to your employer. The investments declared can be used to claim tax deductions and lower your taxable income. The following is a general guide for making an investment declaration:

  1. Gather all the relevant documents for your investments, such as receipts, bank statements, and investment certificates.
  2. Fill out the investment declaration form provided by your employer, which is usually Form 12BB. This form will ask for details such as the nature of the investment, the amount invested, and the section of the Income Tax Act under which the deduction is being claimed.
  3. Submit the completed form along with the supporting documents to your employer.
  4. Keep a copy of the form and the documents for your records.

It is important to note that different types of investments may have different rules and requirements for claiming tax deductions, so it is important to consult with a financial advisor or tax professional to ensure that you are making the most of your investments.

How to Fill Form 12BB?

Form 12BB is a form that is filled out by salaried individuals in India to claim tax deductions for various expenses. The following is a general guide for filling out Form 12BB:

  1. Begin by filling in your personal details such as your name, address, PAN number, and financial year for which you are filing the form.
  2. In the section for HRA (House Rent Allowance), fill in the details of the rent you have paid during the year, the amount of HRA received from your employer, and the amount of HRA claimed as a deduction.
  3. In the section for LTA (Leave Travel Allowance), fill in the details of the travel expenses incurred during the year, the amount of LTA received from your employer, and the amount of LTA claimed as a deduction.
  4. In the section for Tax-saving investments, fill in the details of the investments you have made during the year, the amount invested, and the section of the Income Tax Act under which the deduction is being claimed.
  5. In the section for Other deductions, fill in the details of any other deductions you are claiming such as medical expenses, charitable donations, etc.
  6. Sign the form and provide the required documents as proof of the expenses.
  7. Submit the completed form along with the supporting documents to your employer.

It is important to ensure that the information provided in the form is accurate and that you have all the necessary documents and proof to support your claims. It is always advisable to consult with a financial advisor or tax professional to ensure that you are making the most of your deductions.

 

Extract of relevant Income Tax Rule 26C is as follows Furnishing of evidence of claims by employee for deduction of tax under section 192.

 

26C. (1) The assessee shall furnish to the person responsible for making payment under sub-section (1) of section 192, the evidence or the particulars of the claims referred to in sub-rule (2), in Form No.12BB for the purpose of estimating his income or computing the tax deduction at source.

(2) The assessee shall furnish the evidence or the particulars specified in column

(3), of the Table below, of the claim specified in the corresponding entry in column (2)

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