Form 12BB | Meaning and Definition

What is Form 12BB?

Form 12BB is a declaration of an employee’s lawsuits for tax rebates. A full-time worker must adapt this form to their company to accumulate financial concessions or compensations on holdings and expenditures commencing June 1, 2016. After the fiscal year, it must be documented.

The Investment Declaration, also known as Form 12BB, is sent to the company in addition to securing tax benefits or special deals on investments and costs made by the employees. Employees will pay less tax because TDS will be subtracted from their total adjusted income. Each salaried taxpayer must document Form 12BB. It must be submitted with verified documentation of investments and expenditures.

An employee must use this form to report their holdings for the year. At the close of the financial year, documentation of these inputs and costs is also required.

Deductions that be claimed under Form 12BB

There are various deductions that can be claimed under 12BB:

  • House rent allowances(HRA)
  • Leave Travel Allowances(LTA)
  • Interest amount payable on a home loan
  • All other deductions that are specified under this.

What exactly is the aim of a declaration of investment?

Employees must provide a statement of deductions and loopholes. According to these declarations, the company will deduct TDS from the staff member’s payment. The majority of these expenses must be made through the HR portal of the company.

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