While filing your annual taxes, you are required to calculate the tax deducted at source or TDS. This is especially important if you are a salaried employee. Your employer requires you to complete the details and submit Form 12BB, through which you are eligible to claim tax deductions.

 

It is mandatorily required to fill out the 12BB form under Section 192 of the Income Tax Act. This is beneficial since tax deductions will help in reducing your tax liability. 

 

Read on to learn more about the Form 12BB and how to download one from the portal.

Reasons for Filing Form 12BB

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

1. You Get Tax Deductions

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

 

Some deductions you can claim using a Form 12BB are house rent allowances, travel allowances and deductions on interest paid on home loans, among others.

2. It Documents 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. It Facilitates Accuracy in Tax Assessment

Submission of 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 error-free calculations.

Deductions That Can be Availed Through Form 12BB

Here are the deductions that can be availed 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 24b. 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

Read More

Information Required while Filling Form 12BB

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

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

  • 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

Process of Downloading Form 12BB

Check out the Form 12BB download process here:

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

  • Step 2: Scroll to the ‘Forms/Downloads’ header and click on ‘Income Tax Forms’

  • Step 3: Scroll to the bottom and click ‘View more’ 

  • Step 4: Enter ‘Form 12BB’ within the Form No. section

  • Step 5: For downloading the 12BB form in a fillable format, you are required to download a setup file first

  • Step 6: You may also print a PDF version of the form if required

  • Step 7: After downloading, you need to double-click on the extracted file to open the file opener on your device

  • Step 8: After installing the file open, check the page and click on ‘12BB Form’ to download it

  • Step 9: After the 12BB form is downloaded, click on it to open it

 

Now that you have understood what form means, and its purpose, be sure to submit it at the right time. Most employers provide you with this form. But if they do not, you can always initiate the form 12BB download process online.

 

Simply visit the official website of the income tax department and get the 12BB form from there.

FAQs on Form 12BB

From where do I get Form 12BB?

To get the 12BB Form, visit the official website of the Indian income tax department. You can search for it by entering the form number and clicking on the ‘PDF’ icon to view it in your browser. You can download it to your computer from there. 

When do I have to submit Form 12BB?

You are required to mandatorily fill the Form 12BB while planning your taxes to claim tax deductions and other benefits.

With Form 12BB, what is the maximum tax deduction that can be claimed?

With Form 12BB, you are eligible to get tax deductions of up to ₹1.5 Lakhs. The eligibility for this amount is based on your investments and various other criteria.

What are the consequences of not submitting Form 12BB?

You will not be eligible for tax deductions if you fail to submit Form 12BB within the due date. This will result in a higher tax liability.

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