The Income Tax Department provided a document called Form 12C. Form 12C was a working paper for the income tax rebate for mortgage loans. It was considered an income tax exemption under Section 192 (2B).
It is a form that the employee submits to the employer outlining their other sources of income. If an employee fills out form No. 12C with the necessary information, the employer may consider any income sources besides salary when deducting taxes from wages.
If an employee provides the necessary information in form No. 12C to the employer, the employer may consider the employee’s other sources of income when deducting taxes from the salary.
The Income Tax Department has stopped using the form. You are not required to fill out or provide your employer with form 12C because it is no longer in use.
How do I complete form 12C for income tax?
Employees completed and submitted this form to the employers. Each employee’s income from sources aside from their salary had to be disclosed. Previously, the form was accessible online at the Income Tax Department’s main website. The department has now reissued this form. Both online and offline access is not possible.
- Form 12C, Income Tax Purpose, was made available by the income tax department. All of the explanations are listed below.
- Providing all employees with fair and reasonable treatment is known as “equality.” They were permitted to complete the form and send the information.
- Due to the form, taxpayers can claim if they believe they have been mistreated. The form served as a support system for the nation’s citizens.
- By completing the form, the department effectively recorded accurate data. The income tax department must comply with all legal requirements as required by law.
- The department collected the correct amount of tax from people thanks to the 12C form. Additionally, it made it possible for people to pay the department the proper amount of tax.
- According to the due process of law, my dad added, completing the form gave taxpayers the right to appropriate privacy during the investigation, review, or enforcement process.
Documents required for filling the Form 12C
- Property ownership information – It should go without saying that you must be the property owner to take this deduction. Determine your share of the property if you are a co-owner. Your share of the property determines how much of a deduction you are eligible to make.
- Construction’s completion or the date the property was purchased – The year the property’s structure is finished is the first year interest can be deducted. Additionally, you can assert pre-construction interest. Pre-construction interest may be claimed over five equal payments beginning with the home’s purchase or the year the construction is finished.
- Information about the Borrower – To be eligible for the deduction, the mortgage must be in your name, just like the title. You have the option of co-borrowing the loan.
- A certificate from the bank that contains information about your interest and principal.
- When they have been paid within the year, municipal taxes are eligible for deduction from house property income.