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Everything you need to know about Form 12BB

  • Highlights

  • Declare investments and expenses via Form 12BB

  • Submit Form 12BB to your employer for TDS

  • Submit proofs of your investments to enjoy tax benefit

  • Invest smartly and plan taxes in advance

Form 12BB is important for any salaried individual for tax deduction purposes for both investments and expenses. While you plan your investments, comprising stable options like fixed deposits or marked-linked avenues like mutual funds, it is also important to know about Form 12BB and submit it to your employer at the end of the financial year. Before you submit Form 12BB for FY 2019-20, here’s all you need to know.

What is Form 12BB?

Form 12BB allows you to declare your investments, so your employer can deduct TDS from your salary accordingly. It has been put in place since June 2016 to standardise this process and can be accessed from the IT Department’s website:
https://www.incometaxindia.gov.in/Forms/Income-Tax%20Rules/ITRFORM12BB.pdf

What is the purpose of Form 12BB?

Form 12BB reveals the investments and expenses that you have made or incurred so that you can claim tax exemptions through your employer. Usually you need to submit Form 12BB in the months of January or February along with proofs of your investment. Based on this information, your employer will compute TDS on your salary.

What deductions can you claim via Form 12BB?

Here the deductions you can claim through Form 12BB:

  • 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 cross Rs.1 lakh, submit the PAN number of your landlord.

  • 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.

  • 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.

  • 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 Form 12BB with the details and proof of your investments and expenditure.

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 and add information related to the interest earned from a savings account under Section 80TTA.
When you are choosing investments, make sure you weigh the benefits of avenues that offer tax savings and those that help you grow your wealth.

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 easily. One such example is that of 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 a strong 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 helps you grow your savings. As the only Indian NBFC with an international rating of ‘BBB-’ by S&P Global, Bajaj Finance also carries the rating of FAAA/Stable from CRISIL and MAAA (Stable) from ICRA, so that your investment is risk-free.

In addition to these high safety standards, you also get the flexibility to save on a monthly basis with deposits starting Rs. 5000 per month with Systematic Deposit Plan.

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

Remember that you can still enjoy the deduction up to Rs.1.50 lakh under Section 80C by choosing Equity Linked Savings Schemes, PPF or NPS and filling in the required details in Form 12BB.

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