Form 12BB – Investment Declaration Form for Income Tax
What is Form 12BB of Income Tax?
Form 12BB is a form prescribed by the Central Board of Direct Taxes or CBDT for salaried
individuals to declare their investment. Earlier there was no standard form for making declarations but
from June 1, 2016, the process was standardized with the introduction of Form 12BB.
Employers deduct TDS from the salary of employees if their income falls in the taxable limit.
To avoid TDS deduction, employees declare their investments usually in the months of January and February.
The Finance Act, 2015 had introduced section 192(2D) of the Income-tax Act, 1961 (the Act) wherein the person
responsible for making payment of salary (employer) was obliged to collect the necessary evidence or proof in
the prescribed form and manner to allow any claim for any deduction and/or tax saving investments.
What Kind of Deductions can be claimed by Salaried
Taxpayers through Form 12BB?
Following tax deductions can be claimed with the help of Form 12BB:
1) LTA (Leave Travel Allowance) /LTC (Leave Travel Concession)
2) HRA (House Rent Allowance)
3) Interest payable on home loan
4) All tax deductions which come under Chapter VI-A which covers sections
like section 80C, 80D, 80DD, 80G, 80GGA, 80GGC, 80TTA, 80U, etc.
1) House Rent Allowance
In the first part of Form 12BB, you can fill the details required to claim tax deduction on HRA.
To claim HRA, you need to provide details like name and address of landlord and actual rent paid.
If the rent paid during the year exceeds Rs. 1 lakh, you also need to provide PAN of landlord.
Along with the details mentioned above, you also need to provide rent receipts.
In case, if you are paying the rent by cash, you have to affix revenue stamp on the receipts.
[ Read more: House Rent Allowance ]
2) Leave Travel Allowance
Salaried employees also need to submit travel related expenditure proofs to their employers
if they want to claim tax deduction on LTA/LTC.
The total expenditure being claimed as well the number of documents being submitted should be mentioned in Form 12BB.
The bills (travel tickets) for your travel against LTA can only be claimed via your employer.
LTA is allowed to be claimed twice in a block of four years. The current block is 2014 to 2018.
You are allowed to carry forward your unclaimed LTA to the next year, so you can request your
employer to not deduct tax on it and allow you to claim it next year.
[ Read more: Leave Travel Allowance ]
3) Interest Payment on Home Loans
To claim tax deduction on interest paid for home loan, you need to
provide details like interest paid /payable, lender’s name, lender’s address, lender’s PAN in Form 12BB.
Stamp duty, registration fees and brokerage expenses paid towards transfer of
the property can be claimed as deduction. However, if you transfer the property
before the end of 5 years from the year in which you took possession of the property,
the deduction claimed will be added back to your income and you’ll have to pay tax on it.
[ Read more: Interest Payment on Home Loans ]
4) Income Tax Deductions Under Chapter VI-A
Here you need to provide necessary evidence for all the sections under chapter VI-A for which you want to claim tax deduction.
Investment proofs required to claim some common deductions under chapter VI-A are mentioned below:
Section 80C: This section provides tax deduction on a variety of things.
If you want to claim tax deduction u/s 80C, you need to submit the following investment proofs:
If you have a life insurance policy, you can submit Life insurance Premium paid receipts.
These receipts can be in the name of self/spouse/children.(Premiums paid on endowment / money-back / ULIPs / pension / Term insurance policies can be submitted)
To claim investment in PPF, Passbook copy of PPF (Public Provident Fund) or copy of the stamped deposit receipt,
paid during current Financial Year.
To claim principal payment of home loan you need home loan statement from your banker or provider which
reflects principal portion of your EMIs.
To claim investment in ELSS, retirement funds, etc. you need Mutual Fund statement
(Investments in ELSS funds or Retirement funds only, lump sum or SIPs).
To claim tax deduction on tuition fee paid for you child you need your child’s tuition fee receipts. Kindly note that any payments made towards donation,
uniform fee, van fee, maintenance fees etc., will not be considered.
To claim deduction on investment in NSC you need copy of NSC (National Saving Certificate) certificate in your name.
To claim deduction on investment in copy of Tax saving Bank deposit receipt (5 year deposit).
To claim deduction on investment in copy of Post Office Term deposit receipt with more than 5 year term.
To claim deduction on investment in copy of Sukanya Samriddhi Account passbook.
Section 80D: To claim investment in health insurance,
copy of premium receipt paid during the Financial Year can be submitted.
You can also submit receipt(s) that are paid towards health-checkups.
Section 24B: To claim the total interest paid on your home loan during the FY, you have to submit;
Loan statement or interest certificate from your banker or home loan provider.
You also have to submit completion certificate or occupancy certificate.
Self-declaration whether the house is self-occupied or let-out one.
(Section 80G) Donations to charitable institutions: Receipts of donations are considered as proofs.
Typically the receipt issued by the charitable organization you donate do mentions the eligibility under Section 80G.
Kindly note that you may not be able to claim this deduction if your donation is made in cash and exceeds Rs 10,000.
Education Loan (Section 80E): Copy of loan certificate reflecting the interest payments.
Medical Allowance: Do not get confused between your medical reimbursement allowance and mediclaim expenses.
Medical allowance is provided by your employer. It is part of your employment agreement (salary structure) between your
employer and yourself. To claim this allowance, you need to submit original medical bills with Doctor’s prescription(s) copies.
The medical reimbursement allowance is exempted under Section 10 of the Income Tax Act.
Medical Treatment on handicapped dependent (Section 80DD): Copies of medical bills and duly completed Form 10-IA have to
Medical treatment expenses for the specified disease (Section 80DDB): Medical Bills / expenditure
incurred by way of medical treatment for a specified disease along with a certificate from a hospital
in the prescribed form. Earlier, to claim Tax deductions under Section 80DDB, it was mandatory for an individual
to obtain ‘Doctor Certificate’ or ‘Prescription’ from a specialist working in a government hospital only. This condition
caused undue hardship to the persons intending to claim tax deduction. Now, CBDT (Central Board of Direct Taxes) has issued
a notification relaxing this condition. Specialist Doctors working in Private hospitals also can issue
a ‘certificate / prescription’ now). Download Form 10I.
[ Read more: Section 80DDB ]
NPS Contributions (Section 80CCD): Copy of the stamped deposit receipt,
paid during current financial year and copy of the Passbook with clear mention as NPS (National Pension System) Account .
[Read more: Section 80CCD ]
Sample of Form 12BB