Important Keyword: Chapter VI-A, Income from House Property, TDS.

Form 12BB: Investment Declaration

Form 12BB, also known as an Investment Declaration, holds significant importance for salaried individuals. Essentially, it entails a comprehensive disclosure of all tax-saving investments made during a specific Financial Year. Employers require this form to accurately calculate and deduct TDS on salary income. It must be submitted at the commencement of each financial year.

For instance, let’s consider Mr. Yash, who invested 3 lakhs in tax-saving schemes during FY 2019-20. He is required to file his Form 12BB, disclosing all investment details to his employer between April 1, 2019, and June 30, 2019. Subsequently, he can submit evidence of these investments between January 1, 2020, and March 31, 2020. This practice ensures precise TDS deduction and is advisable for maintaining accurate financial records.

Sample Form 12BB – Investment Declaration

Supporting Documents

Include essential details such as:

1. Personal Information: Name, Address, PAN, and Designation of the employee.
2. Current Financial Year.
3. Details regarding:
   • House Rent Allowance (HRA)
   • Leave Travel Concession or Assistance (LTA)
   • Deduction of Interest on Borrowing
   • Deduction under Chapter VI-A
4. Additional Information: Place, Date, and Signature.

These documents are crucial for accurately declaring tax-saving investments and allowances to the employer for appropriate TDS calculation on salary income.

Read More: Form 10BA : Claim Deduction under section 80GG

Web Stories: Form 10BA : Claim Deduction under section 80GG

Official Income Tax Return filing website: https://incometaxindia.gov.in/