Investment Declaration Form: A Brief About Form 12BB For Declaration
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Investment Declaration Form: A Brief About Form 12BB For Declaration

December 26, 2022
HR Toolkit
Investment Declaration Form

Investment declaration has to be done very early in fiscal time. Before you consider any investment you need to declare your duty saving investment and declare it as per your yearly payment.  An investment declaration form is important for you because it can lead to advanced in-hand payment.

As a salaried person, you must submit an investment declaration attestation before the end of the time (January). The declaration is a document in which you give your investment proposition and also will give attestations for at time end. We all understand the significance of paying for the investment. From paying our levies to duty benefits, claiming deductions, and filing for returns, the starting of fiscal time frequently gets the better of us.

Get all the details from this blog to know more.

What’s An Investment Declaration?

You must know that a portion of your payment is subtracted Tax Deducted at Source, and remitted to the government If you’re a salaried person. For this, an employer asks you to submit details of your duty, deductions & saving instruments to cipher the TDS rightly.

An investment declaration is a form of estimated duty liability submitted by you to your employer at the fiscal time, aka the duty season. Considering the details with the employer from the very launch will help the company cipher the correct TDS. This will make you eligible for duty savings.

The declaration isn’t just confined to investments. It can be extended to other deductions such as home property loss due to interest prepayment of education freights, home loan, casing loan prepayment, and more.

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Why Is Investment Declaration Important?

There are multiple reasons why investment declaration is important. 

  • As per government law, a business needs to abate a charge at source on the assessed pay of the employee.
  • The public authority presented another assessment system with lower charge pieces, yet with lower rejections and allowances, In Union Budget 2020.  Workers are allowed to suppose about and choose the good system dependent on their pay.
  • Before Union Budget 2020, the Income Tax Act permitted workers to guarantee certain costs and gambles their taxation rate.

What Is Form 1? – Definition And Easy Guide To Form 1 Filling

What’s Investment Declaration Form?

Form 12BB is known as the investment declaration form. It is a statement of claims for the purpose of claiming benefits, duty deductions, or a rebate on investments and charges, which has to be submitted by the end of the fiscal time.

What Does Investment Declaration Consist Of?

There are several things to be added to the investment declaration form PDF, check below for more information. 

  1. If the rent paid during the time exceeds Rs. 1 lakh, under-investment declaration form you also need to give a visage to the landlord.
  2. HRA (House Rent Allowance): You can fill in the details to claim duty deduction on HRA in the first part of Form 12BB.  You need to add the name, and address of the landlord to claim HRA.
  3. Leave Travel Allowance Or Concessions ( LTC/ LTA)

-> Salaried workers also need to submit trip-related expenditures to their employers if they want to claim duty deductions on LTA/ LTC.

-> Leave trip concession or leave trip allowance is paid to a salaried hand like it is applicable for the domestic trip only.

-> The total expenditure being claimed with the number of documents being submitted. They should be mentioned in Form 12BB.

-> Interest on Home Loan- To claim duty deduction on interest for a home loan, you also need to give details like interest paid outstanding, lender’s name, and lender’s visage in Form 12BB.

  1. In case, if you’re paying the rent in cash, you have to fix a profit stamp as rent bills.
  2. Enrollment freights, Stamp duty, and brokerage charges paid towards the transfer of the property can be claimed as a deduction.
  3.  Deductions under Section 80C, 80CCD, 80CCC and 80D.
  • 80C to be paid for life insurance and/ or investments to be made in PPF, ELSS finances,  NPS, and/ or academy education freights for children, etc.
  • 80CCC to be paid for the subvention plan.
  • 80CCD made to NPS.
  • 80E Interest that be paid on the education loan.
  • 80D to be paid for medical insurance.
  • 80G Donations to be made to some associations.
  • 80TTA Interest income earned from a savings account.

Form 12BB is a statement of claims for deduction of duty. With effect from 1st June 2016, a salaried person needed to submit Form 12BB to his or her hand to claim duty benefits or rebates on investments and charges. 

Using Form 12BB, a person has to declare the investments that they’ve made during that time.

What Is Form 16? – Definition, Importance, Eligibility, Download, and More

When Do I’ve To Submit Form 12BB?

Generally, employers ask for a declaration at the launch of the fiscal time for future TDS computations. So at that time, Form 12BB has to be latterly submitted towards the end of the fiscal time.

Do I Need To Submit Declaration Form To The Income Tax Department?

Declaration form- Form 12BB doesn’t have to be submitted to the duty department. It has to be submitted to the respective employer.

You can claim a refund of redundant TDS subtracted by filing your income duty return.

You can download the Investment declaration form sample from UBS HR Toolkit.

Investment Declaration Form

Note: This letter will be useful to you! You can edit it, as your needs and requirements.

How Can Employers Consider Supporting Documents?

Employers give a day off for submission of investment or expenditure evidence. Mostly this date lies in January or February of the fiscal year.

How UBS Can Help You To Know Everything About Investment Declaration Form?

UBS has the HR toolkit data of every form and letter, whether they are government-related or HR related. We have combined massive data to help every employee, HR, and employer. You can easily get them and proceed without any hassle.

Moreover, UBS is an HR tech platform, that supports every employee and HR. You can adapt it and go for the digital way to auto-submit some statutory compliance and taxes. A payroll integrated with the HRMS software can definitely help you.

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Alpesh Vaghasiya

Alpesh Vaghasiya

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