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.
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.
