The Central Board of Direct Taxes (CBDT) has recently released New Form No. 12BB. This is going to be the new standard form for salaried tax payers to claim tax deduction on;
- LTA (Leave Travel Allowance) / LTC (Leave Travel Concession)
- HRA (House Rent Allowance)
- Interest payable on Home Loan (Section 24) and
- All Tax Deductions under Chapter VI-A which relates to allowable deductions under various sections including Section 80C, Section 80CCC Section 80CCD, Section 80D etc.,
The employers on the basis of Form 12BB will deduct TDS (tax deducted at source) and pay monthly salary.
“Form 12BB is a standardized form of declaration to be obtained from the employees by the companies for calculating their final tax deductions. Earlier, the companies used to have their own formats and the onus was on employees and the companies that all the necessary information have been furnished. With the new form, it will be easier for both employees and companies as the form is comprehensive enough,” said Sandeep Sehgal, director tax and regulatory at Ashok Maheshwary & Associates LLP.
Employees are also required to furnish evidence for claiming house rent allowance (HRA) if it exceeds Rs 1 lakh in an assessment year.