As a salaried employee you submit your income tax declaration statement at the beginning of every financial year to your employer. It is a provisional statement which has details about your proposed investments and expenses for the given Financial Year that are income tax deductible. Till now there was no standard format for this. However, with the introduction of Form 12BB, government has standardized this process.
The notification will be effective from June 1, 2016. Here are a few important things you should know about Form 12BB:
1) As a salaried tax payer, you can claim your Leave Travel Allowance/LTC deductions by providing to your employer proof of travel in your Form 12BB.
2) In case you want to claim House Rent Allowance, you can do so by providing details like name, address and PAN number of the landlord where the total rent paid is more than 1 lakh in the relevant year.
3) Similarly, to claim deduction on interest on home loans, the name, address and PAN number of the lender will be required.
4) You can also claim deductions u/ch VI-A like deductions u/s 80C, 80CCC, 80CCD, 80E, 80EE, 80G etc.
5) Form 12BB will make the life easier for both employer as well as employee because it has all the details related to relevant tax deductions made by an employee.
So make sure you have all the information required under Form 12BB to submit you tax declarations. To refer to the detailed format click on link – Form 12BB.