Employees to submit Form 12BB to Employer

Employees to submit Form 12BB to Employer.

Until now employer were gathering investment details as per their own format and supporting evidence as per their internal HR Policies from employee. Recent amendment in Income Tax has prescribed Form 12BB so that employer can gather required information . Employee has to provide information related to House Rent Allowance(HRA), Leave Travel Allowance (LTA) , Deduction of interest under the head “Income from house property”, Deduction under Chapter VI-A in new forms along with evidence to their employer

With reference to recent amendment to Section 192 – Deduction of Tax at Source from Salary under Income Tax Act, new sub-section 2(D) inserted as under (w.e.f. 01.06.2016);

“[(2D) The person responsible for making the payment referred to in sub-section (1) shall, for the purposes of estimating income of the assessee  or computing tax deductible under sub-section (1), obtain from the assessee the evidence or proof or particulars of prescribed claims (including claim for set-off of loss) under the provisions of the Act in such form and manner as may be prescribed.]”

With reference to above changes, New Rule 26C for “Furnishing of evidence of claims by employee for deduction of tax under section 192” is added as under .

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

There was long demand to prescribe form to gather required information from employee hence finally government has prescribed this Form 12BB.

Click here to down load Form 12BB .