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CBDT Notifies Form for Deduction Claim from Salary by Employees

A declaration to the employer by his employees is always required to be furnished for supporting the income tax deduction at source as per the various provisions of Income tax that the employees are eligible for. These declaration is considered by the employers while deducting the tax from the salary of their employees as it brings transparency and clarity in the process. As this was being practiced since a long time without any standard format, the CBDT has prescribed Form No.12BB (consult notification No. 30/2016) with the purpose to compute the TDS wef 01.06.2016.

Table of Contents

Following are the Related Rules, forms and provisions applicable from 1st June 2016

Income Tax Rule 26C. ”Furnishing of evidence of claims by employee for deduction of tax under section 192.- (1) The assessee shall furnish to the person responsible for making payment under sub-section (1) of section 192, the evidence or the particulars of the claims referred to in sub-rule (2), in Form No.12BB for the purpose of estimating his income or computing the tax deduction at source.”
“(2) The assessee shall furnish the evidence or the particulars specified in column (3), of the Table below, of the claim specified in the corresponding entry in column(2) of the said Table:”:
S.No Nature of claims Evidence or particulars
1.
House Rent Allowance.
Name, address and permanent account number of the landlord/landlords where the aggregate rent paid during the previous year exceeds rupees one lakh.
2.
Leave travel concession or assistance.
Evidence of expenditure.
3.
Deduction of interest under the head “Income from house property”.
Evidence of investment or expenditure.”
4.
Deduction under Chapter VI-A.
Evidence of investment or expenditure.”.

Newly Inserted Form No.12bb Is As Follows

FORM NO.12BB
(See rule 26C)
Statement showing particulars of claims by an employee for deduction of tax under section 192
1. Name and address of the employee:
2. Permanent Account Number of the employee:
3. Financial year:
Details of claims and evidence thereof
S.No
Nature of claims
Evidence or particulars
(1)
(2)
(3)
(4)
1.
House Rent Allowance:
  1. Rent paid to the landlord
  2. Name of the landlord
  3. Address of the landlord
  4. Permanent Account Number of the landlord
2.
Leave travel concessions or assistance
3.
Deduction of interest on borrowing:
  1. Interest payable/paid to the lender
  2. Name of the lender
  3. Address of the lender
  4. 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:
  1. Section 80C
    (a) ……………..
    (b) ……………..
    (c) ……………..
    (d) ……………..
    (e) ……………..
    (f) ……………..
    (g) ……………..
  2. Section 80CCC
  3. Section 80CCD
(B) Other sections (e.g. 80E, 80G, 80TTA, etc.) under Chapter VI-A.:
  1.  section……………….
  2. section……………….
  3. section………………
  4. section……………….
  5. section……………….
Verification
I,…………………..,son/daughter of……………………….. do hereby certify that the information given above is complete and correct.
Place………………………………………….
Date……………………………………………
(Signature of the employee)
Designation ……………………………….
Full Name:………………”;

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