Investment Declaration Guide India is a country that has been growing at an exponential rate over the last few years. India’s growth in GDP is estimated to be around 7% and it is expected to go up by another 5-6%. India has also seen a significant rise in its per capita income for most of its population, with only the top 10% not experiencing this change. With such rapid economic development, India needs to keep track of all investments made by taxpayers so as to ensure they are paying their taxes accordingly. India follows the same rules as other countries do with respect to tax deductions and reporting on investments made by individuals and companies. This article will provide details about how you can make your investment declaration correctly under Tax Slabs for Individuals India and how you can save tax India by simply declaring your investments in India.

The first thing that India followed was the Report of the High-Level Tax Panel India (HLTP) in order to reduce the complexity, as well as improve tax compliance, considering India’s population as a whole. One such way suggested by this panel was India’s new ITR forms India should make filing income taxes easy and simple for individuals living in India. Thus came into existence the new Income Tax Return forms ITR4, ITR5, and others which replace all previous individual income tax return formats and simplify them to make it easier for people to file their taxes from India for FY 2016-17. Form 12BB is one such form that has been introduced which helps an individual India to declare their Investment India.

Before you can complete your Investment Declaration India, it is important that you get all the details right so as to avoid any hassles later. You should also get clarity on certain sections of Form 12BB India before you start filing your taxes in India. The earlier sections in the form are about personal information and basic salary income tax deductions in India while the other parts will be about investment-related deductions in India.

Form 12BB

Form 12BB is a statement of an employee’s claims for tax deductions. A salaried employee must submit Form 12BB to his or her employer to collect tax benefits or rebates on investments and expenses beginning June 1, 2016. At the end of the fiscal year, Form 12BB must be submitted. All salaried taxpayers must file Form 12BB.

An employee must use Form 12BB to declare the investments they made throughout the year. These investments and expenses must be supported by documentation.

Generate Form 12BB

Form 12BB can be downloaded.

The following tax-saving investments and costs require an investment declaration:

House rent allowance

  • Rent must be paid to the landlord, along with the landlord’s name, address, and PAN/Aadhaar number.

Leave travel concessions or assistance

  • As part of your salary package, you may be eligible for a leave travel concession or leave travel allowance.

Home loan interest

  • Interest due to the lender, as well as the lender’s name, address, and PAN/Aadhaar number

When working for company India, part of your salary comes with PF & EPF deductions India that come under Employee Provident Funds India or PPF (Public Provident Fund). These are deducted by an employer at source every month from your Indian salary. Every year there is an opportunity India for you to place claim India on the PF India deducted India, which generally happens in April. Form 12BB India can be your claim India document if you have made some investments during the year that are eligible for a tax deduction in India. It is important that while filing form 12BB India or investment declaration India 2016-17, all information about the same investments India should match with your previous years’ ITR forms India since there has been a significant change in tax rules of various instruments like PPF (Public Provident Fund) and NSC (National Savings Certificate).

India has also introduced the concept of LTCG (Long Term Capital Gains), which states that instead of paying short-term capital gains rate at 15%, your gains India will be tax-free India after a year of holding the investment India. This rule does not apply to all instruments in India and thus you should check Form 12BB India to see which specific instruments India are eligible for under the new rules India.

There has been an addition India of Section 80C India in form making it mandatory for everyone to declare all their investments in India if they want to get higher salary income tax deduction India benefits from their employer India. There is also a slight change in section 80 DD, which deals with deductions for savings bank interest earned on FDs (Fixed Deposits), Recurring Deposits, and other similar investments made by an individual Indian citizen. Under this scheme, just like LTCG India, India has made FDs India and savings bank interest India tax-free India if the amount India is held for a year India.

Investment Declaration Form 12BB India can be filed at any time of the financial year in India but it is generally done in the first quarter since that is when all employers in India will have details of your investments from previous years in India. If you have not invested anything in India during the FY 2016-17, then simply file form 12BB India with zero values India so as to avoid any errors or inconsistencies later on. This article provides an insight into the legal process behind filing investment declarations in India every individual living in India needs to follow. It also tells about some important sections on Form 12BB which need attention while filing. This article India can help to boost Indian salary India and make sure it is a tax-saving investment in India.

There has been an addition India of Section 80C India in form making it mandatory for everyone to declare all their investments in India if they want to get higher salary income tax deduction India benefits from their employer India. There is also a slight change in section 80 DD, which deals with deductions for savings bank interest earned on FDs (Fixed Deposits), Recurring Deposits, and other similar investments made by an individual Indian citizen. Under this scheme, just like LTCG India, India has made FDs India and savings bank interest India tax-free India if the amount India is held for a year India.

Investment India Declaration India Form India 12BB India can be filed in India at any time India of the financial year India but it is generally done in the first quarter since that is when all employers in India will have details of your investments from previous years India. If you have not invested anything in India during the FY 2016-17, then simply file form 12BB India with zero values India so as to avoid any errors or inconsistencies later on. This article provides an insight into the legal process behind filing investment declarations in India every individual living in India needs to follow. It also tells about some important sections on Form 12BB which need attention while filing. This India article India can help India to boost India’s salary India and make sure it is a tax-saving investment in India.

There has been an addition India of Section 80C India in form making it mandatory for everyone India to declare all their investments in India if they want to get higher salary income tax deduction benefits from their employer India. There is also a slight change in section 80 DD, which deals with deductions for savings bank interest earned on FDs (Fixed Deposits), Recurring Deposits, and other similar investments made by an individual Indian citizen. Under this scheme, just like LTCG India, India has made FDs and savings bank interest tax-free India if the amount is held for a year.

Investment India Declaration India Form India 12BB India can be filed in India at any time India of the financial year India but it is generally done in the first quarter since that is when all employers in India will have details of your investments from previous years India. If you have not invested anything in India during the FY 2016-17, then simply file form 12BB India with zero values India so as to avoid any errors or inconsistencies later on. This article provides an insight into the legal process behind filing investment declarations in India every individual living in India needs to follow. It also tells about some important sections on Form 12BB which need attention while filing India. This India article can help India to boost Indian salary and make sure it is a tax-saving investment.

Deductions under Section 80C, 80CCC, 80CCD

  • Section 80C: Premium to be paid for life insurance and/or investments to be made in ELSS funds, PPF, NPS, and/or school tuition fees for children, etc
  • Section 80CCC: Premium to be paid for annuity plan
  • Section 80CCD: Additional contributions made to NPS

Deductions under other sections like 80E, 80G, 80TTA, etc.

  • Section 80D: Premium to be paid for medical insurance
  • 80E: Interest to be paid on education loan
  • Section 80G: Donations to be made to specified organizations
  • 80TTA: Interest income earned from a savings bank account

Frequently Asked Questions

What is the purpose of an investment declaration?

Employees must provide a statement of deductions and exemptions. According to on these declarations, the employer will deduct TDS from the employee’s salary. The majority of these investments must be made through the HR portal of the employer. Employees must provide a statement of deductions and exemptions. According to on these declarations, the employer will deduct TDS from the employee’s salary. The majority of these investments must be made through the HR portal of the employer.

When do I have to submit Form 12BB? 

Employers frequently request a declaration at the start of the fiscal year in order to estimate TDS computations for the entire year. Form 12BB must be completed and submitted near the end of the fiscal year.

Do I need to submit Form 12BB to the Income Tax Department? 

No, Form 12BB is not required to be sent to the IRS. It is required that you submit it to your employer.

I could not declare my investments on time and my employer has deducted excess TDS. What should I do? 

No, the tax department does not require Form 12BB to be submitted. It is required that you submit it to your boss.

Read, also: Form 12B: A Complete Guide
Form 16B – TDS Certificate for Sale of Property