What is Form 12BB?
Form 12BB is the investment declaration form employees submit to employers to claim tax exemptions and deductions under the Income Tax Act.
Form 12BB is the official investment declaration form used by salaried employees to inform their employer about the tax exemptions and deductions they want to claim. Employers use this information to calculate monthly TDS correctly so that excess tax is not deducted at source. It is prescribed under Rule 26C of the Income Tax Rules, 1962.
Employees usually submit Form 12BB in April at the start of the financial year, and again if there are changes. The form covers common exemptions and deductions such as house rent allowance (HRA), leave travel concession (LTC), Section 80C investments, Section 80D health insurance premium and Section 24(b) home loan interest. Proof such as rent receipts, investment statements, medical premium receipts and loan interest certificates may be required.
If an employee does not submit Form 12BB, the employer may deduct TDS without considering exemptions, leading to higher monthly deductions. The employee can still claim the deductions later when filing the income tax return.
Worked example
An employee living in a metro city submits Form 12BB with these declarations:
| Deduction / exemption | Declared amount | Proof needed | |---|---|---| | HRA | ₹1,80,000 | Rent receipts, landlord PAN if rent > ₹1 lakh | | Section 80C | ₹1,50,000 | PPF, ELSS, LIC receipts | | Section 80D | ₹25,000 | Health insurance premium receipt | | Section 24(b) | ₹2,00,000 | Home loan interest certificate |
The employer uses these figures to compute taxable income and deduct TDS each month.
Related reading
Read the TDS on salary guide or use the tax regime calculator to compare old and new regime.
Frequently asked questions
- Who fills Form 12BB?
- Salaried employees fill it and submit it to their employer, usually in April or at the start of the financial year.
- What can I claim through Form 12BB?
- House rent allowance, leave travel concession, deduction under Section 80C, 80D and interest on home loan under Section 24(b).
- Is Form 12BB required under the new tax regime?
- Most deductions are not available in the new regime, so the form is mainly used by employees opting for the old tax regime.