Form 12BB for employees to submit declaration and Investment proof to save their taxes
Using Form 12BB, an employee has to declare the investments that they have made during the year. Documentary evidence of these investments and expenses have to be provided at the end of the financial year as well.
Investment declaration has to be made for the following tax-saving investments and expenses:
1 House rent allowance
Rent to be paid to landlord along with name, address and PAN/Aadhaar number of the landlord
2 Leave travel concessions or assistance
Leave travel concession or leave travel allowance as per salary package
3 Home loan interest
Interest payable to lender along with name, address and PAN/Aadhaar number of the lender
4 Deductions under Section 80C, 80CCC, 80CCD
80C: Premium to be paid for life insurance and/or investments to be made in ELSS funds, PPF, NPS and/or school tuition fees for children, etc
80CCC: Premium to be paid for annuity plan
80CCD: Additional contributions made to NPS
Know more about deduction under section 80C, 80CCC, 80CCD.
Deductions under other sections like 80E, 80G, 80TTA, etc.
80D: Premium to be paid for medical insurance
80E: Interest to be paid on education loan
80G: Donations to be made to specified organisations
80TTA: Interest income earned from savings bank account.
How you can save tax without investing money?
Yes, It is possible for you to save tax by deducting certain expenses which may have already been incurred by you
By restructuring your salary and by adding certain allowances which are tax-free.
So if you have incurred such expenses then make sure you get a deduction of tax for them.
Leave Travel Allowance (LTA)
The LTA exemption applies only to the domestic travel expenses, such as airfare, train or bus fare, incurred by the employee.
House Rent Allowance(HRA)
The deduction available is the least of the following amounts:
1. Actual HRA received;
2. 50% of [basic salary + DA] for those living in metro cities (40% for non-metros); or
3. Actual rent paid less 10% of basic salary + DA
Phone & Internet Bill Reimbursement
Expenses incurred due to the telephone and mobile usage at home are reimbursed and it can be claimed without any tax.
Uniform Allowance
The total expenditure incurred by an employee for maintaining his/her official uniform is exempt from taxation.
Newspaper/Journal Allowance
The employees can claim reimbursement on the expenses incurred on periodicals, books, journals, newspapers, etc. under the IT Act. This is a tax-free reimbursement which is the lower amount between the total bill amount and the amount provided along with the salary.
Meal Coupons
The food coupons provided to the employees by the employers are taxable as a prerequisite. Up to an amount of Rs. 50/meal, these coupons are tax-free
Children Education/Hostel Allowance
The allowance given by the employer to the employee for their child’s education is tax-exempt. A maximum of Rs. 100/month can be claimed by an employee as an exemption.
The Author is an Income tax, Acoounting and GST Practitioner and can be contacted at 9024915488.
| 1. Name and address of the employee: | |||
| 2. Permanent Account Number of the employee: | |||
| 3. Financial year: | |||
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Details of claims and evidence thereof |
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| Sl No. | Nature of claim | Amount (Rs.) | Evidence / particulars |
| (1) | (2) | (3) | (4) |
| 1 | House Rent Allowance:
(i) Rent paid to the landlord (ii) Name of the landlord (iii) Address of the landlord (iv) Permanent Account Number of the landlord Note: Permanent Account Number shall be furnished if the aggregate rent paid during the previous year exceeds one lakh rupees |
||
| 2 | Leave travel concessions or assistance | ||
| 3 | Deduction of interest on borrowing:
(i) Interest payable/paid to the lender (ii) Name of the lender (iii) Address of the lender (iv) Permanent Account Number of the lender (a) Financial Institutions(if available) (b) Employer(if available) (c) Others |
||
| 4 | Deduction under Chapter VI-A
(A) Section 80C,80CCC and 80CCD (i) Section 80C (a) ………………… (b) ………………… (c) ………………… (d) ………………… (e) ………………… (f) ………………… (g) ………………… (ii) Section 80CCC (iii) Section 80CCD (B) Other sections (e.g. 80E, 80G, 80TTA, etc.) under Chapter VI-A. (i) section……………… (ii) section……………… (iii) section (iv) section (v) section |
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Verification |
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| I,………………….. ,son/daughter of…………………………… do hereby certify that the information given above is
complete and correct. |
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| Place………………………………………………..
Date………………………………………………… Designation ………………………………….. |
(Signature of the employee) |
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Author Bio
Hi, Sir mera jada tax deduct ho rha hai company se, What should I do to reduce my taxes, Can you please help me in declaration ?