Investments declaration guide - Form 12BB

Read about Form 12BB and how it helps your employer compute the tax deductible at source on your salary.
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Form 12BB
OPEN FD
3 mins
11-Feb-2025

Form 12BB is essential for any salaried individual for the tax deduction for investments and expenses. While you plan your investments, investing in stable options like fixed deposits or market-linked avenues like mutual funds, it is equally important to know about Form 12BB and submit it to your employer. Form 12BB reveals the investments and expenses you have made or incurred to claim tax exemptions through your employer. Usually, you need to submit Form 12BB in January or February, along with proof of your investment. Based on this information, your employer will compute TDS on your salary.

Pro tip

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What is Form 12BB

Form 12BB is a document that employees in India use to declare their investments and expenses that are eligible for tax deductions. It is a statement of claims by an employee for deduction of tax under section 192 of the Income-tax Act, 1961. Form 12BB is typically used by employees to provide details of investments or expenses that they have incurred and wish to claim as tax deductions.

Form 12BB must be submitted by the employee to their employer, who will use the information provided in the form to calculate the tax to be deducted from the employee's salary. The form includes details such as the employee's name and PAN number, their salary, and the amount of tax they wish to claim as deductions.

Form 12BB is mandatory for all salaried individuals who wish to claim tax deductions on investments or expenses made during the financial year. It is an important document for both employees and employers as it helps ensure that the correct amount of tax is deducted from an employee's salary.

What is the purpose of Form 12BB

The claims you have made for various tax benefits are listed on Form 12BB. According to Income tax regulations, you are required to submit this form to your employer if you are a salaried employee in order to receive the tax refund. The Form 12BB must be sent in at the conclusion of the fiscal year.

Also read: How to Generate UAN Number Online

What deductions can you claim via Form 12BB

Here are the deductions you can claim through Form 12BB.

Nature of claims

Evidence or particulars

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.

Leave travel concession or assistance

Evidence of expenditure

Deduction of interest under the head “Income from house property”

Name, address and permanent account number of the lender

Deduction under Chapter VI-A

Evidence of investment or expenditure


1. HRA (House Rent Allowance)

To claim HRA, add the name and address of your landlord along with copies of your rent receipts. If your total rent crosses Rs. 1 lakh, submit the PAN number of your landlord.

2. LTA (Leave Travel Allowance)/ LTC (Leave Travel Concession)

Add the amount and proof of expenses you have incurred for travel to claim LTA and LTC.

3. Interest payable on home loan

As per Section 24 of the IT Act, you can claim tax benefit for the interest on your home loan by submitting the interest certificate from your lender. Enter the interest amount you have paid along with your lender’s name, address and PAN in Form 12BB to do so.

4. All tax deductions (such as sections 80C, 80D, 80DD, 80G, 80GGA, 80GGC, 80TTA, 80U)

To enjoy tax exemptions for all investments made under Chapter VI A of the IT Act, you will need to fill out Form 12BB with the details and proof of your investments and expenditure.

5. What information is required to be filled in Form 12BB?

Form 12BB is a document that employees in India are required to submit to their employers to claim tax deductions and exemptions. Here is the information that needs to be filled in Form 12BB:

  1. Name, address, and PAN number of the employee
  2. Name and address of the employer
  3. Financial year for which the declaration is being made
  4. Details of the tax deductions and exemptions claimed by the employee, including:

a. House Rent Allowance (HRA) - Rent paid, name, and address of the landlord
b. Leave Travel Allowance (LTA) - Details of travel expenses incurred
c. Deductions under Chapter VI-A of the Income Tax Act - Investments made in various tax-saving schemes like Life Insurance Premium, Public Provident Fund, Equity Linked Saving Scheme, National Pension System, etc.
d. Interest on home loan - Interest paid on a home loan during the financial year
e. Other exemptions and deductions under the Income Tax Act

The employee must provide supporting documents to prove the expenses or investments made, as applicable. The employer will use this information to calculate the employee's tax liability and deduct TDS (tax deducted at source) accordingly.

Where to invest to claim tax deductions in Form 12BB

You can claim deductions under Section 80C for the life insurance premium you have paid. For any investments done in ELSS, NPS, PPF or a tax-saving deposit, as well as for the education fees paid for your children.

Section 80CCC covers any premium you have paid for an annuity plan, while Section 80CCD covers any additional contribution you have made for NPS.

Section 80D and Section 80E cover medical insurance premiums and interest paid on an education loan, respectively. Include information regarding donations you have made to charity (which need to be recognised as charitable organisations) under Section 80G. Add information related to the interest earned from a savings account under Section 80TTA.

When choosing investments, make sure you weigh the benefits of avenues that offer tax savings and those that help you grow your wealth.

Also read: How to Check PF Claim Status

Fixed deposit variants

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FD Max

INTEREST RATES UP TO
8.60% p.a.
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Digital FD Only on App/Web

INTEREST RATES UP TO
8.60% p.a.
Invest Online

42 months

INTEREST RATES UP TO
8.60% p.a.
Open FD

FD - Age below 60

INTEREST RATES UP TO
8.35% p.a.
Open FD

FD - Senior Citizen

INTEREST RATES UP TO
8.60% p.a.
Open FD

FD – Special Tenure

INTEREST RATES UP TO
8.60% p.a.
Open FD

Should you invest in tax-saving fixed deposits

When making investments to save tax, you may come across company fixed deposits that may not offer tax savings but enable you to grow your savings efficiently. One such example is Bajaj Finance Fixed Deposit, where you can look for lucrative interest rates, which are way above the usual tax-saving FD interest rates.

Bajaj Finance FD is an ideal investment option for you, no matter what else you have in your investment portfolio. It helps you grow your principal without the risk of market fluctuations, so you can benefit from stability and assured returns.

Bajaj Finance Fixed Deposit is one of the safest investment options that can help you grow your savings. As the only Indian NBFC with an international rating of ‘BBB-’ by S&P Global, Bajaj Finance FD are AAA rated from financial agencies like CRISIL and ICRA.

Now that you see how choosing the Bajaj Finance FD strengthens your financial future, plan your investments and request a call from an executive today!

You can still enjoy the deduction of up to Rs. 1.50 lakh under Section 80C by choosing Equity Linked Savings Schemes, PPF or NPS. Fill in the required details in Form 12BB.

Frequently asked questions

When do I have to submit Form 12BB?

The Form 12BB, is submitted at the end of fiscal year, usually in January or February, along with documentation of your investment. Your company will compute TDS on your salary based on this information.

Do I need to submit Form 12BB to the Income Tax Department?

Form 12BB is submitted to your employer and not the Income Tax Department, based on which your company will compute the TDS on your salary.

Is submission of Form 12BB compulsory?

Form 12BB is mandatory for all salaried individuals who wish to claim tax deductions on investments or expenses made during the financial year. It is an important document for both employees and employers as it helps ensure that the correct amount of tax is deducted from an employee's salary.

Should pensioners submit Form 12 BB to their pension paying authority?

Yes, pensioners must submit investment declaration with variations as pension is considered a deferred salary for income tax purposes.

Do you need to incorporate your provident fund and NPS contribution in Form 12BB?

It is not required to include the mandated NPS and provident fund deductions from your pay in statutory percentages. Your employer takes this sum into account when determining your taxable income as the appropriate standard deduction.

Is Form 16 and Form 12 BB same?

The two serve different, although related purposes. Form 16 includes a final income tax calculation along with your pay, benefits, taxable income, and any benefits or exemptions you have received.
The information on benefits and exclusions on your total income is included in Form 12BA, which is an annexure to Form 16.

What is the purpose of Form 12BB?

Form 12BB is a document that employees in India use to declare their investments and expenses that are eligible for tax deductions. It is a statement of claims by an employee for deduction of tax under section 192 of the Income-tax Act, 1961.

How to Fill out Form 12BB when you change jobs?

Make sure you request Form 12B when you leave your prior employer. If they are unable to do so or refuse to give it to you, you can download it from the official income tax website and complete it while referring to your pay stub. Additionally, you can give this Form 12B to the new employer when you're at your new job.

Form 12B contains all the necessary details, including your salary, the tax withheld from it, the professional tax paid on your behalf, and the PAN and TAN of your employers. Your new employer can calculate your tax deductions for the remaining months of the fiscal year using the information supplied in this form.

How to get form 12BB from previous employer?

To obtain Form 12BB from your previous employer, you can contact their HR or payroll department and request a copy. Most employers maintain records of such forms and can provide it promptly, either digitally or in print.

What happens if I don't declare previous employer income?

If you fail to declare income from your previous employer, your tax liability may be miscalculated, potentially resulting in underpayment. This could lead to penalties, interest, or complications during tax assessments by the income tax department.

What if form 12BB is not submitted?

If Form 12BB is not submitted, your employer may not consider your tax-saving investments or deductions, leading to higher tax deductions at source (TDS). You can still claim deductions when filing your income tax return but submitting it on time simplifies the process.

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Disclaimer

As regards deposit taking activity of Bajaj Finance Ltd (BFL), the viewers may refer to the advertisement in the Indian Express (Mumbai Edition) and Loksatta (Pune Edition) furnished in the application form for soliciting public deposits or refer https://www.bajajfinserv.in/fixed-deposit-archives
The company is having a valid Certificate of Registration dated March 5, 1998 issued by the Reserve Bank of India under section 45 IA of the Reserve Bank of India Act, 1934. However, the RBI does not accept any responsibility or guarantee about the present position as to the financial soundness of the company or for the correctness of any of the statements or representations made or opinions expressed by the company and for repayment of deposits/discharge of the liabilities by the company.

For the FD calculator the actual returns may vary slightly if the Fixed Deposit tenure includes a leap year.