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

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

The CBDT vide Notification No. 30/2016 dt 29 April, 2016 has amended Income Tax Rules w.e.f. 1st June 2016 by inserting Rule 26C stipulating requirement of submission of evidence/ proof/ supporting documents in Form 12BB by employees for claiming certain deductions from salary income, as under:

26C. Furnishing of evidence of claims 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 (i.e. S. 80C ~ 80U)

Evidence of investment or expenditure.

Above notification also include format of Form 12BB as under:


“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 claimAmount

(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:………………”;

 CBDT Notification 30/2016 dt 29 April, 2016

 Download Form 12BB

5 Comments

  1. VEENA PRASHANTH May 13, 2016
    • Suhas May 31, 2016
      • msuneel Jul 13, 2016
  2. A. LOGESWARA RAO Jun 16, 2016
  3. Rajan R variar Jul 20, 2016

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