Employees to furnish evidence/particulars of HRA/HBA/LTC/80C-80U Deductions on Form 12BB

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DDOs have been authorized u/s 192 to allow certain deductions, exemptions or allowances or set-off of certain loss as per the provisions of the Act for the purpose of estimating the income of the assessee or computing the amount of tax deductible under the said section. 

The evidence /proof /particulars for some of the deductions/exemptions/allowances/set-off of loss claimed by the employee such as rent receipt for claiming deduction in HRA, evidence of interest payments for claiming loss from self-occupied house property, etc is not available to the DDO. 

To bring certainty and uniformity in this matter, Finance Act, 2015 inserted section 192(2D). Section 192(2D) provides that person responsible for paying (DDOs) shall obtain from the assessee evidence or proof or particular of the prescribed claim (including claim for set off of loss) in the form and manner as may be prescribed. 

A detailed circular regarding TDS on salary income is issued by CBDT every year .For Financial year 2015-16 Circular no 20/2015 dated 2/12/2015 was issued .However no form and rules has been prescribed for financial year 2015-16 as stated in section 192(2D) .Now CBDT has notified new Income tax rules vide notification number 30/2016 dated 29/04/2016 wef 01.06.2016. Under these rules New form 12BB has been inserted . Now every employee have to submit specific evidence to claim a  deductions .

As stated above these rules are applicable wef 01.06.2016 so it will be applicable fro Financial year 2016-17.

Under New rules following evidences/particulars are required to be submitted .

1. To claim House Rent Allowance deduction under section 10(13A): Name, address and permanent account number of the landlord/landlords where the aggregate rent paid during the previous year exceeds rupees one lakh. 
2. Leave travel concession or assistance : Evidence of expenditure. 
3. Deduction of interest under the head “Income from house property”: Name, address and permanent account number of the lender. 
4. Deduction under Chapter VI-A.: Evidence of investment or expenditure.

After reading the above changes ,you may not have big reaction as most of the good companies are already working on the same line and asking  the identical information from employees as suggested by new rules.

Then what is the need to introduce these rules ? : As pointed out earlier this has been done to bring certainty and uniformity and after insertion of New section 192(2D) and new rules now Income tax department may enforce it better way.

New form 12BB : 

                                                    “FORM NO.12BB (See rule 26C) 

Statement showing particulars of claims by an employee for deduction of tax under section 192 

1. Name and address of the employee: 

2. Permanent Account Number of the employee: 

3. Financial year: 

                                Details of claims and evidence thereof 

Sl. No.           Nature of claim                   Amount (Rs.)                  Evidence / particulars 

(1)                        (2)                                       (3)                                         (4) 

1. House Rent Allowance: 

(i) Rent paid to the landlord 

(ii) Name of the landlord 

(iii) Address of the landlord 

(iv) Permanent Account Number of the landlord 

Note: Permanent Account Number shall be furnished 

if the aggregate rent paid during the previous year 

exceeds one lakh rupees 

2. Leave travel concessions or assistance 

3. Deduction of interest on borrowing: 

(i) Interest payable/paid to the lender 

(ii)Name of the lender 

(iii) Address of the lender 

(iv) Permanent Account Number of the lender 

        (a) Financial Institutions(if available) 

        (b) Employer(if available) 

         (c) Others 

4. Deduction under Chapter VI-A 

(A) Section 80C,80CCC and 80CCD 

(i) Section 80C 

   (a) …………….. 

   (b) …………….. 

   (c) …………….. 

   (d) …………….. 

   (e) …………….. 

   (f) …………….. 

   (g) …………….. 

(ii) Section 80CCC 

(iii) Section 80CCD 

(B) Other sections (e.g. 80E, 80G, 80TTA, etc.) under Chapter VI-A. 

(i) section………………. 

(ii) section………………. 

(iii) section……………… 

(iv) section………………. 

(v) section………………. 

                                                                 Verification 

I,…………………..,son/daughter of……………………….. do hereby certify that the information given above is complete and correct. Place……………………………………………... 

Date……………………………………………....          (Signature of the employee) 

Designation ……………………………….….               Full Name:………………”; 

Other Incidental Changes in TDS return : Two New columns has been added in Form 24Q Annexure two (quarterly return for TDS on salary for last quarter)

(c) in Form No. 24Q, in Annexure-II, after entry 356, the following shall be inserted, namely:- 

“357 In case of House Rent Allowance claim-Name and Permanent Account Number of the landlord if aggregate payment during the previous year exceeds rupees one lakh 

358 In case of deduction of interest under the head “Income from House property” – Name and Permanent Account Number of the lender ( if available)”; 

Download Notification 30/2016 dated 29/04/2016(2MB)

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