Form 12BB is the Investment declaration that is furnished to the employer in order to claim tax benefits or rebates on investments and expenses incurred by the employees. This reduces the tax burden on employees as TDS would be deducted from Total adjusted Income. Form 12BB applies to all salaried taxpayers. It is to be filed along with valid proofs of investments and expenses.
Following are the deductions, that can be claimed through Form 12BB:
- House rent allowances (HRA)
- Leave travel allowance (LTA)
- Interest payable on a home loan
- All deductions specified under Chapter VI-A