Form 12BB of Income Tax – Objective of Form 12BB, Areas of Form 12BB

Type 12 BB of Earnings Tax: Central board of direct taxation (CBDT) has just recently issued a new kind called “Type– 12 BB”. The function of this form is to bring an amount of consistency in regard to the submission of details connecting to financial investments and any expenditure as IT statement by the staff members to employers.

Normally a company calls for the IT statement by his workers at the start of the fiscal year so as to allow his HR team the estimation of tax to be paid by each employee, consequently subtracting the tax at source from their monthly salaries. Basically this is a declaration by the staff members which is provisionary in nature containing the information of proposed investments and permissible expense such as lease and so on

Objective of Form 12 BB:

Kind 12 BB has actually come as a statutory prescription by CBDT making it compulsory for the employees to submit the information of their financial investments (though proposed) and acceptable expense along with the necessary evidence. Previously there was no particular format in which worker has to furnish these details to employers. Type 12 BB would now serve as the one revealing the format of disclosures.

Download Kind 12 BB in Word, Excel and PDF Format

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Areas of Form 12 BB:

Detail details to be provided in each area of Type 12 BB is as under:

Home Lease Allowance (HRA):

HRA paid by the company to the employees is excused under area 10(13 A) of the earnings tax. And the calculation for the exact same has actually been prescribed by this section. For the purpose of declaring this exemption staff member needs to provide specific information of his Landlord such as Name, address and PAN (if the aggregate amount of rent paid throughout the year exceeds Rs 1,00,000) and the amount of rent paid throughout the year. As a documentary evidence in addition to these details employee has to provide the rental receipts also.

Leave Travel Allowance:

For declaring the exemption under area 10( 5) in regard of leave travel allowance paid by the company to worker, details of total amount paid in addition to the proof for the same need to be furnished:

Payment of interest on home mortgage:

For the function of declaring interest paid on home mortgage admissible under section 24 of the earnings tax employee together with the proof of payments needs to furnish the details of the loan provider such as his name, address and PAN.

Chapter VI-A Reductions:

This section is for the purpose of offering details connecting to different financial investments and expenditure covered by chapter VI-1 such as:

80 C, 80 CCC, 80 CCD, 80 D (deduction of medical insurance coverage premium), 80 E (deduction of interest paid on educational loan), 80 G (donations made) and so on,

Proof of the investments and payments made have to be submitted to employer along with kind 12 BB:

After filling all the information employee has to offer his statement that the information is total and correct.

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