Form 12BB: How To Download & Fill the Investment Declaration Form

Form 12BB is a statement of claims submitted by an employee to the employer at the beginning of the financial year. The form covers declarations for key deductions such as House Rent Allowance, Leave Travel Allowance, interest on home loans, and investments under Chapter VI-A like Section 80C and 80D.

Based on the declarations in Form 12BB, the employer calculates and deducts the correct TDS for the financial year. Hence, it is important to fill and submit Form 12BB correctly to ensure proper TDS calculation.  

Form 12BB PDF Download 

You can download and understand the structure of Form 12BB from the income tax portal.

Things to be Done Before Filling Form 12BB

The following are the things to be done before filling the Form 12BB:

• Make sure that HRA and LTA are part of your package by studying your CTC structure
• These can be claimed as an exemption if these allowances are a part of your CTC structure
• Obtain interest certificate and loan repayment schedule from the bank.
• Collect the receipts for all the expenses and investments that can be claimed as a deduction, such as tuition fees, Life Insurance premium receipts, receipts for rent, donations, etc.

How to Fill Form 12BB?

Filling out Form 12BB isn't as difficult as it seems. This guide will walk you through each section, explaining what information to include and how to claim maximum tax benefits.

Part I: Personal Details

• Full Name
• Address
• PAN (Permanent Account Number)
• Financial Year (Current year: 2024-25)

Part II: Details of Claims and Evidence

1. House rent allowance

If you live in a rented accommodation and have HRA as a part of your CTC, you can claim HRA exemption by submitting the following details -

• Amount of Rent paid to landlord
• Name of your landlord
• Address of your landlord
• PAN No. of your landlord if the total rent paid during the year is more than Rs.1 lakh.
• Submit proof: Monthly rent receipts or rental agreement

Use ClearTax's HRA Calculator to find out your HRA exemption limit!

Note: 

• If HRA is not part of your CTC but you live in a rented house, you can claim a similar tax deduction under section 80GG.
• You only need a rent receipt if your monthly rent is more than Rs.3,000.
• You can’t claim HRA exemption if you are living in your own house.
• If you're paying rent to your parents, it's advisable for them to report it as part of their income when filing their Income Tax Return.
• Avoid submitting fake rent receipts; doing so could land you in trouble with tax authorities.
• It is advisable to print a formal rent agreement on stamp paper.

You can use ClearTax to generate rent receipts.

2. Leave Travel Concessions or Leave Travel Allowance (LTA)

To claim LTA benefits, you will have to submit travel documents like boarding passes, flight tickets, or travel agent invoices to your employer.

• Eligibility: LTA is only available if it's part of your CTC.
• Who Can Benefit: You, your spouse, children, dependent parents, and dependent siblings.
• Frequency: You can claim LTA twice within a four-year block (current block: 2022-2025).
• Carry-Forward Option: If you claimed only one LTA in the previous block, you can carry it forward and use it in the next block's first calendar year.
• Domestic Travel Only: LTA applies only to domestic travel, not international trips. No exemption for accommodation expenses.

3. Home loan interest

You're eligible to deduct the interest on your home loan as per Section 24 of the Income Tax Act. This deduction applies to the interest paid on a loan taken for building, rebuilding, repairing, buying, or renovating your home.

When filling out Form 12BB, you need to provide the following details:

• The interest you paid or payable to the lender during the financial year along with name, address and PAN/Aadhaar number of the lender

There are various other tax saving benefits of a home loan:

• Interest Payment: Deduct interest paid on loans for purchase, construction, renovation, or repair (up to Rs. 2 lakh for self-occupied property, entire amount for rented property).
• Principal Repayment: Deduct up to Rs. 1.5 lakh under Section 80C (valid for both self-occupied and rented property).

Evidence Required to be Submitted:

• Interest Certificate: From your lender, showing interest paid and loan type.
• Possession/Completion Certificate: For new or renovated properties.
• Self-Declaration: Whether the property is self-occupied or rented.

4. Deductions under Section 80C, 80CCC, 80CCD,80D

Chapter VI-A of the Income Tax Act covers deductions under various sections like 80C (investments), 80D (medical insurance), and 80G (donations). To claim these deductions, you can submit the following proof of your investments or expenses:

1. Public Provident Fund

Investment Proof:

• Copy of the stamped deposit receipt paid during the current financial year, or,
•  Copy of passbook clearly mentioning the PPF account.

2.  ELSS Mutual Fund

Investment Proof

• Copy of the investment certificate in your name with date of investment, investment amount, type of investment, etc.
• If you are submitting the proofs in Jan and plan to continue the SIP for FEB and March, you can declare it for those months as well.

3. Life Insurance Policy

Investment Proof

• Premiums paid towards life insurance for self, spouse and/or children

4. Tax-saving FDs

Investment Proof: 

• Copy of the deposit receipt, or passbook

5. NSC

Investment Proof: 

• Copy of NSC Certificate in the name of the employee

6. Tuition Fees of children

Investment Proof: 

• Copy of tuition fees receipt paid to educational institutions along with the nature of payment (donation fees, capitation fees, sports fees, transport fees, uniform and stationery fees, etc.

7. Office Term Deposit

Investment Proof: 

• Copy of deposit receipt (qualifying deposits are deposits over 5 years)

8. Medical Insurance Policy and Preventive Health check-ups under section 80D

Medical insurance premium paid, fees paid on preventive health check-up, and amount spent of medical treatment of senior citizens can be claimed as a deduction under section 80D.

Investment Proof: 

• Copy of premium receipt paid during the year. Copy of the bills of preventive health check-ups in the name of the employee or family.

9. Medical expenses under section 80DD (for handicapped dependents)

Investment Proof: 

• Proof of amount spent for medical treatment, training and rehabilitation of handicapped dependent, or, Amount paid towards or deposited in any scheme of LIC, UTI or any other Board approved insurer for maintenance of handicapped dependent. 
• Form 10-IA.

10. Deduction under section 80U

Investment Proof: 

• Deduction for disability up to Rs.75,000 (Rs.1,25,000 for severe disability) can be availed after providing a medical certificate from any Government Hospital. 
• A copy of certificate in Form 10-1A issued by a competent medical authority stating the percentage of disability should be submitted as proof.

11. Interest Paid on Higher Education Loan

Section 80E provides deduction on interest paid for education loan during the financial year.

Investment Proof: 

• A copy of the bank certificate mentioning the principal and the interest amount paid and the amount payable

12. Donations under section 80G

Charitable donations made can be claimed as a deduction under section 80G on satisfaction of conditions specified.

Investment Proof: 

• Valid receipts for the donations made that qualify for deduction under this section. 
• Receipts should be in the name of the employee.

Part III: Verification

The final step in Form 12BB is verifying the details you've provided. Simply fill in your name, your parent's name, city, and the date along with your signature.

Also Read:
1. What is Form 12B?