New Rule 26C (Income Tax) requiring Evidence for Deductions from Salary in Form 12BB

CBDT notifies the Income-tax (11th Amendment) Rules, 2016. to insert new IT Rule 26C w.e.f. 01/06/2016, which requires submission of evidence/ proof/ supporting documents in Form 12BB by employees for claiming certain deductions from salary income, as under:

CBDT Income Tax Notification 30/2016 dt. 29/04/2016: New IT Rule 26C for Furnishing of evidence of claims in Form 12BB by employee for deduction of tax under section 192

As per the new Income Tax Rules the employees are now required to furnish certain evidence or particulars of the claims or deductions to the employer. The same are to be considered by the employer during the course of calculation of salary income of the respective employees and estimation/ determination of Income Tax/ TDS liability thereon. Such evidence or proof or supporting details or particulars are now required to be submitted by the salaried employees in new Income Tax Form 12BB, in respect of following claims for deductions:

1. House Rent Allowance:

Name, address and permanent account number of the landlord/ landlords where the aggregate rent paid by the employee during the previous year exceeds rupees one lakh.

2. Leave travel concession or assistance:

Evidence of expenditure on travelling.

3. Deduction of interest under the head Income from house property:

Name, address and permanent account number of the lender from whom the funds were borrowed to acquire the property.

4. Deduction under Chapter VI-A (Sections 80C ~ 80U):

Evidence of investment or expenditure.

It may be noted that above notification also include the newly prescribed format of Form 12BB .

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