Form 12BB: Purpose, Sample, How To Download
Form 12BB serves a crucial purpose in the income tax system of India. It requires employees to provide detailed information about their income, investments, and expenses to their employers.
Employees are required to submit Form 12BB to their employers at the beginning of each financial year or whenever there is a change in their income or investment details. Form 12BB allows employees to claim deductions and exemptions they are eligible for under various sections of the Income Tax Act. This includes deductions for investments made in schemes like Provident Fund (PF), Public Provident Fund (PPF), National Savings Certificates (NSC), and deductions for expenses such as house rent, medical insurance premiums, and donations. it serves as a tool for tax planning for employees. By providing details of their income and investments, employees can assess their tax liability, explore available deductions, and optimize their tax planning strategies to minimize their tax burden.
Employers use the information provided in Form 12BB to calculate the total taxable income of the employee and determine the appropriate amount of TDS to deduct from the employee’s salary each month. Form can be submitted electronically to the employer, and many organizations may require employees to fill out this form through their online HR or payroll systems.
Contents of Form 12BB requires employees to provide various details
- Breakdown of salary income, including basic salary, allowances, perquisites, and other benefits.
- Details of deductions under various sections of the Income Tax Act, such as Section 80C (for investments in provident fund, life insurance, etc.), Section 80D (for health insurance premiums), Section 80G (for donations), and so on.
- Declaration of house rent allowance (HRA) received and details of rent paid if claiming exemption for HRA.
- Declaration of interest paid on housing loan if claiming deduction under Section 24(b) of the Income Tax Act.
FORM 12BB SAMPLE
Form No. 12BB
(See rule 26C)
| Statement showing particulars of claims by an employee for deduction of tax under section 192 |
| 1. Name of the employee: ______________________ |
| 2. Permanent Account Number (PAN) of the employee: ______________________ |
| 3. Address of the employee: ______________________ |
| Details of Income under the head “Salaries” |
| 1. Salary as per provisions contained in section 17(1) |
| of the Income-tax Act, 1961 |
| 2. Value of perquisites under section 17(2) |
| of the Income-tax Act, read with rule 3 of the Income-tax Rules, 1962 |
| 3. Profits in lieu of salary under section 17(3) of the Income-tax Act, read with rule 3 of the Income-tax Rules,1962 |
| 4. Total (1 + 2 + 3) |
| Details of deductions under section 16 |
| 1. Entertainment allowance under section 16(ii) |
| 2. Tax on employment |
| Details of deductions under Chapter VI-A |
| 1. Deductions under section 80C (e.g., LIC, PPF, NSC, etc.) |
| 2.Deductions under section 80CCC (e.g., pension plan) |
| 3.Deductions under section 80CCD (e.g., National Pension Scheme) |
| 4. Deductions under section 80D (e.g., medical insurance premiums) |
| 5.Deductions under section 80E (e.g., interest on education loan) |
| 6.Deductions under section 80G (e.g., donations) |
| 7. Deductions under section 80TTA (e.g., interest on savings account) |
| 8. Deductions under section 80TTB (e.g., interest on deposits for senior citizens) |
| 9. Other deductions under Chapter VI-A (please specify) |
| 10. Total (1 to 9) |
| Details of other incomes reported by the employee |
| 1. Income from house property (e.g., rental income) |
| 2. Income from other sources (e.g., interest income) |
| 3. Any other income (please specify) |
| 4. Total (1 to 3) |
| Declaration |
| I, ________________________, hereby declare that the above particulars are true to the best of my knowledge and belief and that no information relevant to the computation of the total income of the previous year has been concealed or withheld. |
| Date: ________________ |
| Place: ________________ Signature of the employee: ________________________ |
HOW TO FILL FORM 12BB
Here’s a step-by-step guide on how to fill Form 12BB:
- Step 1: Personal Information
Fill in your personal details at the beginning of the form. This includes:
Your name
Your Permanent Account Number (PAN)
Your address
- Step 2: Income Details
Provide details of your income under the head “Salaries.” This includes:
Breakdown of your salary, including basic salary, allowances, perquisites, and other benefits.
Value of any perquisites under Section 17(2) of the Income Tax Act.
Profits in lieu of salary under Section 17(3) of the Income Tax Act.
Step 3: Deductions under Section 16
List any deductions under Section 16. These may include entertainment allowance and tax on employment.
- Step 4: Deductions under Chapter VI-A
Provide details of deductions under Chapter VI-A of the Income Tax Act. Common deductions include:
- Section 80C deductions (e.g., investments in LIC, PPF, NSC, etc.).
- Section 80D deductions (e.g., medical insurance premiums).
- Section 80G deductions (e.g., donations).
- Section 80E deductions (e.g., interest on education loan).
- Step 5: Other Incomes
Declare any other incomes you have earned during the financial year. This may include income from house property, interest income, or any other sources.
- Step 6: Declaration
At the end of the form, make a declaration stating that the information provided is true and that you have not concealed any relevant information.
