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Form 12bb

Overview

What is Form 12BB?

Form 12BB is a statement of claims by an employee for deductions and exemptions to be considered while computing TDS (Tax Deducted at Source) on salary. It was introduced by the CBDT under Rule 26C of the Income Tax Rules, 1962.

Every salaried employee must submit Form 12BB to their employer at the beginning of the financial year, declaring their planned investments and expenses that qualify for tax deductions. This helps employers calculate the correct TDS amount.

Every salaried employee must submit Form 12BB to their employer at the start of the financial year
Covers HRA, LTC, home loan interest, and Chapter VI-A deductions
Submitted to the employer — NOT to the Income Tax Department
Actual investment proofs must be submitted by January each year
Helps employers calculate the correct TDS amount on salary
Form 12BB

Simplify Form 12BB with ConfluxHR

Collect investment declarations digitally, auto-calculate TDS, and generate Form 16 seamlessly.

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FAQ

Frequently Asked Questions

Everything you need to know about Form 12BB and investment declarations.

Form 12BB is a statement of claims by an employee for deductions and exemptions to be considered while computing TDS on salary. Introduced by CBDT under Rule 26C of the Income Tax Rules, 1962, it is submitted to the employer — not the Income Tax Department — and is used solely for TDS calculation purposes.
Every salaried employee who wishes to claim tax deductions or exemptions must submit Form 12BB to their employer at the beginning of each financial year. It is applicable to all salaried individuals regardless of their income level.
  • House Rent Allowance (HRA) — landlord details, PAN if rent exceeds ₹1 lakh/year
  • Leave Travel Concession (LTC) — travel evidence like tickets or boarding passes
  • Home Loan Interest under Section 24 — lender details and interest certificate
  • Chapter VI-A deductions — 80C, 80D, 80E, 80G investments and expenses
  • Life Insurance Premium (LIC)
  • Public Provident Fund (PPF)
  • Employee Provident Fund (EPF)
  • Equity Linked Savings Scheme (ELSS)
  • National Savings Certificate (NSC)
  • 5-Year Fixed Deposit
  • Sukanya Samriddhi Yojana
  • Home Loan Principal Repayment
  • Tuition Fees for Children
  • Senior Citizens Savings Scheme
  • April: Submit initial investment declaration to employer
  • July–December: Employer deducts TDS based on declared investments
  • January: Submit actual proofs of investments to employer
  • February: Employer recalculates TDS based on actual proofs
  • March: Final TDS adjustment and Form 16 preparation
  • Rent receipts with landlord's signature and revenue stamp
  • Landlord's PAN card copy (if annual rent exceeds ₹1 lakh)
  • Home loan interest certificate from bank or NBFC
  • LIC premium receipts or policy documents
  • PPF passbook or account statement
  • ELSS mutual fund statements
  • Health insurance premium receipts (80D)
  • Education loan interest certificate (80E)
  • Donation receipts with 80G certificate
If an employee does not submit Form 12BB, the employer will compute TDS without considering any deductions or exemptions. This results in higher TDS deductions from the salary. The employee can still claim refunds when filing their ITR, but it affects monthly take-home pay.
Yes. If an employee's investment plans change during the year, they can submit a revised Form 12BB to the employer. The employer will then recalculate the TDS accordingly for the remaining months of the financial year.
ConfluxHR provides a digital investment declaration module where employees can submit Form 12BB online, upload proof documents, and track approval status. The system auto-calculates TDS based on declarations, sends reminders for proof submission, and generates Form 16 at year-end — eliminating all manual paperwork.