Form 12BB

While filing your annual taxes, you need to calculate the Tax Deducted at Source or TDS. If you’re a salaried employee and have opted for the old tax regime, your employer requires you to fill and submit Form 12BB. 

This form is used for declaring the investments you made in the financial year, so you can claim tax benefits on expenses or investments. Thus, by submitting this form, you can claim tax deductions under the old tax regime.

Since June 2016, the Income Tax Department has implemented a standardised format of Form 12BB. Here are the contents:

• PAN number of the employee

• Name and address of the employee

• Details of Leave Travel Allowance (LTA) claimed

• Details of House Rent Allowance (HRA) received

• Declaration of the rent amount paid, if HRA is received

• Declaration of investments made under various tax-saving schemes like the National Pension System (NPS), Public Provident Fund (PPF), Equity Linked Saving Scheme (ELSS), etc.

• Declaration of the interest amount of a home loan, if any

• Other deductions and exemptions, if applicable

Employers usually request you to submit the form at the beginning of the financial year. This helps them estimate the TDS calculations for the entire year. 

Form 12BB needs to be submitted later, close to the end of the financial year. The specific due date is generally determined by your employer, and is usually around January or February of the following year.

The 12BB form serves various purposes, briefly outlined below:

1. Get Tax Deductions

On submitting the 12BB form, you can claim deductions on your net payable annual tax. This means your tax liability is reduced, helping you save money. Moreover, doing so can increase your take-home pay as well.

Some deductions you can claim using Form 12BB are house rent allowances and travel allowances, among others.

2. Document Your Tax-saving Investments

Form 12BB allows you to provide details of your yearly expenses as well as those investments that qualify for deductions. This helps in documenting and keeping track of your investments in one place.

3. Get Accurate Tax Assessment

Submitting Form 12BB ensures that your tax calculations are accurate. This is because all your deductions and expenses help in the easy computation of your tax, resulting in accurate calculations.

While filling Form 12BB, provide the following information and documents:

• Your name, home address and Permanent Account Number (PAN)

• Your employer’s name and address

• The financial year of declaration

• Details of exemptions and deductions you claim

• HRA- total rent paid to the homeowner, home address and full name of the homeowner

• LTA- information about the expenses incurred during travel

• Information of investments

• Interest paid on a home loan during the specific assessment year

• Additional deductions and tax exemptions

Check out the Form 12BB download process here:

1. Visit the official website of the income tax department at https://incometaxindia.gov.in/pages/downloads/forms.aspx

2. Enter the form number on the tab towards the leftmost section of the page

3. Click on ‘Search’

4. For downloading the form in a fillable format, you are required to download a setup file first

5. You may also print a PDF version of the form if required

6. After downloading, you need to double-click on the extracted file to open the file opener on your device

7. After installing the file open, check the page and click on ‘12BB Form’ to download it

8. After the 12BB form is downloaded, click on it to open it

Here are the deductions that you can enjoy through Form 12BB:

1. House Rent Allowance (HRA)

You are required to provide information regarding the house rent allowance for claiming deductions on the same. This information includes:

• Receipts of the rent

• Name and address of the homeowner

• PAN card of the homeowner if the annual rent exceeds ₹1 Lakh

2. Leave Travel Allowance (LTA)

Another deduction you can claim through Form 12BB is a leave travel allowance. This deduction depends on your salary package. You must note that you can claim deductions only for domestic travel twice within a span of 4 years.

3. Interest Paid on a Home Loan

You can also claim deductions on the interest paid on your home loan. This is according to Section 80C and Section 24(b). For claiming deductions, you need to provide the following information:

• Interest certificate from the lender

• The total interest that is payable to the home loan lender

• Name and home address of the home loan lender

• PAN/Aadhaar card of the home loan lender

4. Tax Deductions Under Section 80C, 80CCC, 80CCD, 80D, 80E, 80G, etc.

You can get the benefit of tax deductions under Sections 80C, 80CCC, 80CCD, 80D and 80E. Here are some crucial details regarding these sections:

• 80C: Deductions on the premium payment of life insurance and other investments

• 80CCC: Deductions on the premium payment of annuity plans

• 80CCD: Deductions on contribution to NPS

• 80D: Deductions on the premium payment of medical insurance

• 80E: Deductions on interest payment of an educational loan

• 80G: Deductions on donations made towards specific organisations