New Form for Tax Deduction Claims
The Income Tax Department has introduced a new form making it mandatory for salaried taxpayers to furnish proof of travel for claiming a tax deduction on Leave Travel Allowance (LTA) or Leave Travel Concession (LTC). The Central Board of Direct Taxes (CBDT) has implemented Form 12BB, requiring employees to provide their employers with evidence related to House Rent Allowance (HRA) if it exceeds Rs 1 lakh in an assessment year. According to a CBDT order, the details to be furnished include the name, address, and PAN of the landlord where the aggregate rent paid exceeds Rs 1 lakh.
For claiming a deduction of interest on a home loan, the name, address, and PAN of the lender must be furnished. Similarly, for claiming a tax deduction on LTA/LTC, the new rule mandates that employees provide their employers with evidence of travel expenditure. Additionally, evidence of investment or expenditure must be provided to claim tax deductions under Chapter VI-A. Chapter VI-A pertains to allowable deductions under Section 80C, Section 80CCC, Section 80CCD, and other sections like 80E, 80G, and 80TTA.
These requirements are part of new Rule 26C and Form 12BB, which mandate employees to furnish their employers with evidence/particulars related to HRA, LTA, deduction of interest under the head 'income from house property,' and deduction under Chapter VI-A. In the same order, CBDT also extended the time limit for depositing tax deducted at source (TDS) on the transfer of immovable property from 7 days to 30 days. Additionally, the due date for filing quarterly TDS returns in Form 24Q, 26Q, and 27Q was extended by 15 days. The amended rules will be applicable from June 1, 2016.
From India, Ahmadabad
Acknowledge(1)
Amend(0)
34The Income Tax Department has introduced a new form making it mandatory for salaried taxpayers to furnish proof of travel for claiming a tax deduction on Leave Travel Allowance (LTA) or Leave Travel Concession (LTC). The Central Board of Direct Taxes (CBDT) has implemented Form 12BB, requiring employees to provide their employers with evidence related to House Rent Allowance (HRA) if it exceeds Rs 1 lakh in an assessment year. According to a CBDT order, the details to be furnished include the name, address, and PAN of the landlord where the aggregate rent paid exceeds Rs 1 lakh.
For claiming a deduction of interest on a home loan, the name, address, and PAN of the lender must be furnished. Similarly, for claiming a tax deduction on LTA/LTC, the new rule mandates that employees provide their employers with evidence of travel expenditure. Additionally, evidence of investment or expenditure must be provided to claim tax deductions under Chapter VI-A. Chapter VI-A pertains to allowable deductions under Section 80C, Section 80CCC, Section 80CCD, and other sections like 80E, 80G, and 80TTA.
These requirements are part of new Rule 26C and Form 12BB, which mandate employees to furnish their employers with evidence/particulars related to HRA, LTA, deduction of interest under the head 'income from house property,' and deduction under Chapter VI-A. In the same order, CBDT also extended the time limit for depositing tax deducted at source (TDS) on the transfer of immovable property from 7 days to 30 days. Additionally, the due date for filing quarterly TDS returns in Form 24Q, 26Q, and 27Q was extended by 15 days. The amended rules will be applicable from June 1, 2016.
From India, Ahmadabad
Acknowledge(1)Amend(0)
That means we are again going back to a state where IT returns filing is going to be complex, with proof of investments, proof of expenditure on LTA, etc.
The easier the filling of IT return, the better the compliance will be. Probably, a lot of noise will be made, and this will also get withdrawn.
From India, Pune
Acknowledge(0)Amend(0)
The easier the filling of IT return, the better the compliance will be. Probably, a lot of noise will be made, and this will also get withdrawn.
From India, Pune
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Excel sheet for Tax deduction.xls
TDS on service tax - CBDT clarification 13.1.2014.pdf