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Declaration form to be submitted to employer for income tax deductins    Click here to Write Reply
sir

is there  any prescribed form for submitting declaration to employer for  tax savings by an employee.

priyanka



 
Post by - priyanka , Mar 22 2018 11:44PM Last Post By - ramesh bhatia Mar 22 2018 11:45PM


Reply by - ramesh bhatia , Mar 22 2018 11:45PM

CBDT notifies form for deduction claim from Salary by employees: In the past for the purpose of getting tax saving deductions salaried employees furnish a declaration to their employer in respect of Income Tax Deduction they are eligible under various provisions of Income Tax alongwith supportings. Employers consider these declaration and supporting while calculating TDS to be deducted on Salary of their employees. Although practice of taking such declaration is in existence from long time but there was no standard format for the same.

But now CBDT has vide notification No. 30/2016 prescribed Form No.12BB for the purpose of estimating employee’s income or computing the tax deduction at source wef 01.06.2016.

Following is the extract of the rule 26 C :

 

Furnishing of evidence of claims by employee for deduction of tax under section 192.

26C. (1) The assessee shall furnish to the person responsible for making payment under sub-section (1) of section 192 the evidence or the particulars of the claims referred to in sub-rule (2) in Form No.12BB for the purpose of estimating his income or computing the tax deduction at source.

(2) The assessee shall furnish the evidence or the particulars specified in column (3) of the Table below of the claim specified in the corresponding entry in column (2) of the said Table:—

Table

Sl. No

Nature of claims

Evidence or particulars

(1)

(2)

(3)

1.

House Rent Allowance.

Name address and permanent account number of the landlord/landlords where the aggregate rent paid during the previous year exceeds rupees one lakh.

2.

Leave travel concession or assistance.

Evidence of expenditure.

3.

Deduction of interest under the head "Income from house property".

Name address and permanent account number of the lender.

4.

Deduction under Chapter VI-A.

Evidence of investment or expenditure.]

Although no penalty is prescribed for non collection of form 12BB however it is better to collect the same from each employee for better documentation.