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.
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.
There are multiple reasons why investment declaration is important.
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.
There are several things to be added to the investment declaration form PDF, check below for more information.
-> 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.
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.
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.
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.
Employers give a day off for submission of investment or expenditure evidence. Mostly this date lies in January or February of the fiscal year.
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.