Income Tax — Form 12BB Guide

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Declare Your Tax-Saving Investments to Your Employer

Form 12BB is the declaration form salaried employees must submit to their employer to claim deductions on HRA, LTA, home loan interest, and Chapter VI-A investments. Use our calculator to fill it accurately and reduce your TDS.

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What is Form 12BB?

Form 12BB is a statement of claims made by a salaried employee for deduction of tax at source (TDS) from salary. It is submitted to the employer at the beginning of the financial year (or when joining a new job) and acts as a formal declaration of the tax-saving investments and expenditures the employee intends to make during that year.

Based on this declaration, the employer estimates the employee's tax liability and deducts TDS accordingly from monthly salary. Without a Form 12BB, the employer will deduct higher TDS, which the employee can recover only at the time of ITR filing.

Important: Form 12BB was introduced by CBDT vide Rule 26C of the Income Tax Rules, 1962, and became mandatory from 1 June 2016. You can download the prescribed format of Form 12BB from the Income Tax Department website.

HRA Exemption
LTA Claim
Home Loan Interest
Chapter VI-A

How to Fill Form 12BB?

Form 12BB has four main parts. Each part covers a specific category of deduction or exemption that a salaried employee can claim. Here is a quick overview:

Part A
House Rent Allowance (HRA)

Declare your rent payments, landlord details, and PAN of the landlord if annual rent exceeds ₹1 lakh. The employer uses this to compute HRA exemption under Section 10(13A).

Part B
Leave Travel Allowance (LTA)

Declare leave travel concession claimed during the year. LTA exemption under Section 10(5) covers actual travel cost for domestic journeys within India for self and family.

Part C
Interest on Home Loan

Declare the interest paid on a home loan taken for a self-occupied or let-out property. Deduction up to ₹2 lakh is available for self-occupied property under Section 24(b).

Part D
Deductions under Chapter VI-A

Declare all investments qualifying for deductions — PPF, ELSS, NSC, LIC premiums (Sec 80C), NPS (Sec 80CCD), health insurance premiums (Sec 80D), and donations (Sec 80G), among others.

Pro Tip: Submit Form 12BB at the start of the financial year. If you make additional investments during the year, you can submit a revised declaration to your employer before the end of the financial year so TDS is adjusted accordingly.

Part 1 — House Rent Allowance (HRA)

To claim HRA exemption, you must provide the following details in Form 12BB:

1
Name of the Landlord

Enter the full name of the person to whom rent is paid.

2
Address of the Rented Property

Provide the complete address of the rented accommodation where you reside.

3
Amount of Rent Paid

Mention the total rent paid during the year or the monthly rent amount.

4
PAN of the Landlord (if rent > ₹1 lakh per annum)

If your annual rent exceeds ₹1 lakh, you must furnish the PAN of the landlord. If the landlord does not have a PAN, a self-declaration to that effect must be submitted.

How is HRA Exemption Calculated? The exempt HRA is the lowest of: (a) actual HRA received, (b) 50% of salary for metro cities / 40% for non-metro, (c) actual rent paid minus 10% of salary. The balance is taxable.

Part 2 — Leave Travel Allowance (LTA)

In this part, you declare the details of leave travel concession or assistance claimed. The employer uses this information to allow the exemption under Section 10(5) of the Income Tax Act.

Details Required in Part 2

  • Nature of entitlement (leave travel concession / assistance)
  • Amount of expenditure incurred on travel
  • Details of evidence or proof submitted (travel tickets, boarding passes)

LTA Block Rule: LTA can be claimed for two journeys within a block of four calendar years. The current block is 2022–2025. Only the actual cost of travel (not accommodation or food) qualifies for exemption, and only the shortest route fare is considered.

Part 3 — Deduction of Interest on Borrowing

This part covers deduction of interest paid on a housing loan under Section 24(b). You must provide the lender's name, address, PAN, and the amount of interest payable/paid.

Detail Required Description
Name of the lender Name of the bank, NBFC, or individual from whom the loan was taken
Address of the lender Complete address of the lending institution or individual
PAN of the lender Mandatory if lender is a bank, NBFC, or employer; optional for individuals
Amount of interest paid/payable Total interest for the financial year as per loan statement

Deduction Limit: For a self-occupied property, interest deduction is capped at ₹2 lakh per year. For a let-out property, the actual interest paid is deductible without a cap, but the overall loss from house property that can be set off against salary income is restricted to ₹2 lakh.

Part 4 — Deductions under Chapter VI-A

This is typically the largest section of Form 12BB. It covers all tax-saving investments and expenditures under various sections of Chapter VI-A. Key deductions include:

Section Investment / Expenditure Maximum Limit
80C PPF, ELSS, NSC, LIC, Home Loan Principal, 5-Year FD, ULIP, etc. ₹1,50,000
80CCC Contribution to pension fund (LIC or other approved insurer) ₹1,50,000 (combined with 80C)
80CCD(1) Employee contribution to NPS (National Pension System) 10% of salary (within ₹1.5L ceiling)
80CCD(1B) Additional NPS contribution over and above 80CCD(1) ₹50,000 (additional deduction)
80D Medical/health insurance premium for self, family, and parents ₹25,000 / ₹50,000 (senior citizens)
80E Interest on loan taken for higher education Actual interest (no cap)
80G Donations to approved charitable institutions 50% or 100% of donation
80TTA / 80TTB Interest from savings bank account / deposits (senior citizens) ₹10,000 / ₹50,000

Note: Chapter VI-A deductions are available only under the Old Tax Regime. If you have opted for the New Tax Regime under Section 115BAC, you cannot claim these deductions and Form 12BB declarations for Chapter VI-A will have no effect on your TDS computation.

FORM 12BB — Official Prescribed Format

The following is the prescribed format of Form 12BB as per Rule 26C of the Income Tax Rules, 1962:

FORM NO. 12BB — Statement of particulars to be furnished by an employee
Sl. No. Particulars Amount (₹) Evidence / Particulars
1. Nature of claim — House Rent Allowance [u/s 10(13A)]
a Name of the landlord
b Address of the landlord
c Permanent Account Number (PAN) of the landlord — mandatory if annual rent exceeds ₹1,00,000
2. Leave travel concession or assistance [u/s 10(5)]
Amount of expenditure incurred Evidence of expenditure
3. Deduction of interest on borrowing [u/s 24(b)]
a Name of lender
b Address of lender
c PAN of lender (bank / employer / other)
d Interest payable / paid to lender Certificate from lender
4. Deductions under Chapter VI-A
A — Section 80C, 80CCC, 80CCD(1)
i Section 80C — PPF, ELSS, NSC, LIC, Home Loan Principal, 5-Year FD, etc. Documentary evidence
ii Section 80CCC — Pension fund contribution
iii Section 80CCD(1) — NPS employee contribution
B — Other deductions
i Section 80CCD(1B) — Additional NPS contribution
ii Section 80D — Medical insurance premium Premium receipt
iii Section 80DD — Expenditure on disabled dependent
iv Section 80DDB — Treatment of specified diseases
v Section 80E — Interest on education loan Certificate from lender
vi Section 80EE — Interest on home loan (first-time buyer)
vii Section 80G — Donations to approved funds/institutions Donation receipt
viii Section 80TTA / 80TTB — Interest from savings account / deposits
5. Verification
I, _________________, son/daughter of _________________, do hereby certify that the information given above is complete and correct. Place: ________ Date: ________ Signature of the employee: ________

Frequently Asked Questions — Form 12BB

● Is it mandatory to submit Form 12BB?

Yes. As per Rule 26C of the Income Tax Rules, 1962, it is mandatory for every salaried employee who wishes to claim deductions or exemptions from TDS on salary to submit Form 12BB to their employer. Without this declaration, the employer cannot factor in these deductions while computing TDS.

● When to submit Form 12BB?

Form 12BB should ideally be submitted at the beginning of the financial year (April), or at the time of joining a new employer during the year. Most employers also allow a revised declaration to be submitted towards year-end once actual investments are confirmed, enabling accurate TDS adjustment.

● What happens if information furnished in Form 12BB is incorrect?

The employee is personally liable for any incorrect information furnished in Form 12BB. If false declarations lead to lower TDS deduction, the shortfall plus interest can be demanded at the time of ITR filing or through notices. The employer is protected if they relied in good faith on the employee's declaration and collected actual proofs.

● How does Form 12BB differ from Form 16?

Form 12BB is a declaration submitted by the employee to the employer at the start of the year. Form 16 is the TDS certificate issued by the employer to the employee at the end of the financial year, reflecting actual TDS deducted. While Form 12BB guides the employer on how much TDS to deduct, Form 16 is the official record of how much was actually deducted.

● What is the Form 12BB format and where to download it?

The prescribed format of Form 12BB is available on the Income Tax Department's website (incometax.gov.in) under the Forms / Downloads section. Many employers also provide their own digitised version of Form 12BB through their HR portals. You can also use the Tax2Win Form 12BB calculator above to auto-fill and download the form.

● Is Form 12BB applicable under the New Tax Regime?

If you opt for the New Tax Regime under Section 115BAC, most exemptions (HRA, LTA) and Chapter VI-A deductions (80C, 80D, etc.) are not available. Therefore, Form 12BB declarations for these become irrelevant under the new regime. However, the standard deduction of ₹75,000 (FY 2024–25) and deduction under Section 80CCD(2) for employer NPS contribution are still allowed.