Investment Declaration Guide

Investment declaration is normally done at the start of the financial year. You are asked to declare your tax saving investments for the coming year so your employer can deduct tax from your monthly salary. By declaring your investments you can get higher in-hand salary. You just have to make an estimate of the investments that you intend to make at the beginning of the year. As for the actual proof of investment, it can be submitted at the end of the year. It is not necessary for you to actually invest the exact amount you have declared at the beginning of the year.

Latest update: 

The CBDT has introduced a new form, Form 12BAA, to help employees report tax deducted at source (TDS) or tax collected at source (TCS) on income from sources other than salary. This allows employers to adjust the TDS calculations, reducing the overall tax deduction from the salary and increasing the employee's take-home pay. The form simplifies tax reporting, ensures more accurate calculations, and helps minimize the need for refund claims.

1. Form 12BB

Form 12BB is a statement of claims by the employee for the purpose of dedcution of taxes, As of 1st June 2016, all salaried employees are required to submit their Form 12BB to their employer for the purpose of claiming tax benefits or rebates on investments and expenses. The form is submitted at the close of the financial year. The employee must declare all their investments through the financial year in the Form 12BB. The employee must also provide documentary proof of these investments at the end of the financial year.

2. Sample Form 12BB

3. Generate Form 12BB

Download Form 12BB Generate your Form 12BB https://cleartax.in/form12bb The following tax-saving investments and expenses must be declared:

House rent allowance

• House rent to be paid to landlord along with the landlord’s name, address and PAN details

Leave travel concessions or assistance

• Leave travel concession or leave travel allowance as provided by the employer in the salary package

Home loan interest

• Home loan interest payable to lender along with the lender’s name, address and PAN details

Deductions under Section 80C, 80CCC, 80CCD and 80D

• 80C: Premium to be paid for life insurance and/or investments to be made in ELSS funds, PPF, NPS and/or school tuition fees for children, etc
• 80CCC: Premium to be paid for annuity plan
• 80CCD: Additional contributions made to NPS

 Deductions under other sections like 80E, 80G, 80TTA

• 80E: Interest to be paid on education loan
• 80G: Donations to be made to specified organisations
• 80TTA: Interest income earned from savings bank account
• 80D: Premium to be paid for medical insurance

Finish your E-filing for FREE with ClearTax