Form 12BB : Investment Declaration Form
What is Form 12 BB?
Form 12 BB is an Investment Declaration form that every salaried individual employee needs to submit to their employer for the purpose of claiming deductions of tax and exemptions on their salary. Form 12 BB has certain mandatory fields which needs to be filed such as details of investments, exepenses, perquisites, allowances and deduction claims etc.
With the help of Form 12BB employers determine accurate tax liability of their employees on their salary. Employees are required to fill this form either at the time of joining of their employments or at the beginning of every financial year. While submitting this form 12 BB, actual documents or evidences of your investments or expenses need not be submitted. One has to understand that this declaration is only of the estimated amounts and actual figures can vary depending upon situations. However, employers usually at the end of the financial year asks for the proofs of details entered into the form.
What details are to be mentioned in Form 12 BB?
Following details are to be mentioned while submitting Form 12 BB :
- Name, PAN number, Aadhar Number and Address of Employee
- Financial year for which Form is being submitted
- Details relating to HRA component of the salary like Name, address, and PAN of the landlord alongwith amount of rent paid. (Quoting of landlord’s PAN is mandatory if rent paid during the year exceeds Rs.1 Lakh)
- Leave Travel concessions or assistance
- Details regarding deduction of interest on borrowing and details like Name and Address of the lender alongwith details like interest paid to lender
- Deductions under Chapter VI-A including 80C , 80CCC, 80CCD, 80E, 80G, 80TTA etc.
- Verification section declaring that the above mentioned information is true, complete and correct
A Draft of Form 12 BB is attached below:
Which evidences and documents you need to submit to your employer:
- Rent receipts to claim HRA
- Actual expenses voucher to claim LTA
- Interest certificates from Banks or Financial institutions to claim interest paid on borrowings
- Statements or certificates to claim investments under chapter VIA
- Payments receipts like Mediclaim insurance premiums etc.
Conclusion:
Form 12 BB is a declaration statement required to be submitted by an employee to its employer at the beginning of a financial year for assisting employer in correctly estimating tax liability of his employee and deduction of tax from his income. To support the details mentioned in the Form, employee is supposed to submit supporting evidences and documents to justify his claims at the end of the financial year. Even if certain deductions are not shown in Form 12 BB and excess TDS is deducted, employee can still claim the unclaimed deduction while filing his ITR and claim refund of the excess tax deducted.
About Author:
CA Chinmay Shirish Agate
Chinmay Agate is a Practicing Chartered Accountant having 4+ years of experience and expertise in the field of Direct Taxation and Auditing compliances. In the past, he worked in various CA firms and comes with wide industry experience from services, retail to manufacturing to trading where he has handled various complex assignments. He has keen interest in Forex and Derivative knowledge as well as fundamental analysis.