CBDT has recently notified new form 12BB to claim a tax deduction on LTA (Leave Travel Allowance), HRA  (House Rent Allowance) and Interest paid on home loans. As per new rules, you need to submit your proof of travel in new form 12BB for claiming LTA benefits. In addition to this, you need to furnish detail of HRA and deduction of interest borrowing in the same form. This new notification is applicable from 1st June 2016. Earlier also employers were taking a declaration from an employee. However, there was no standard format for the same. Introduction for this new form will standardize the process.

Download the Automated Arrears Relief Calculator U/s 89(1) with Form 10E from the F.Y.2000-2001 to F.Y.2017-18

Download New Form 12BB for LTA, HRA & Interest Deduction

Download Form 12BB in Word Format
Download Form 12BB in Excel Format
How to fill up New Form 12BB?

You need to first furnish your name, address, PAN card number and financial year in the form 12BB. After furnishing this information you need to go to the respective section and fill out information.

On September 11, 2017 by www.taxexcel.net

Share It

No Comments

Read More

According to the income tax guidelines, income tax is deductible annually for each financial year commencing from 1^st of April and ending on the 31^st March. The responsibility of the employer has been affixed by the Income-tax Department to deduct income tax from the salary of employees monthly on a proportionate basis and deposit before the due date ( Monthly) as prescribed and report same to Income tax Department (quarterly as well as annually). The aggregate tax calculated on the estimated projected income will be deducted proportionately in 12 months, thus the assessment needs to be done on at the start of the year.

Download All in One TDS on Salary for Private employees for F.Y.2016-17 & A.Y.2017-18 [ This Excel utility can prepare at a time Tax Compute Sheet ( Income tax Declaration )+ Automatic H.R.A. Exemption Calculation + Individual Salary Structure as per Private Concerned Salary Pattern + Automatic Form 16 Part A&B + Automatic Form 16 Part B for F.Y.2016-17 + Form 12 BA, as per Finance Budget 2016-17]

Therefore, all employees are requested to declare their proposed investments for the financial year 2016–17 ,so that proportionate income tax could be calculated & systematic deducted from the salary can be started early

It has to be noted that only the expenditure actually incurred on payment of rent in respect of residential accommodation occupied by the assessee subject to the limits laid down in Rule 2A, qualifies for exemption from income-tax. Thus, house rent allowance granted to an employee who is residing in a house/flat owned by him is not exempt from income-tax.

Download All in One TDS on Salary for Govt & Non Govt Employees for F.Y.2016-17 [This Excel utility can prepare at a time Tax Compute Sheet ( Income tax Declaration )+ Automatic H.R.A. Exemption Calculation + Individual Salary Structure as per Govt & Non -Govt Concerned Salary Pattern + Automatic Arrears Relief Calculator U/s 89(1) with Form 10E + Automatic Form 16 Part A&B + Automatic Form 16 Part B for F.Y.2016-17 as per Finance Budget 2016-17]

There were the various anomaly as well as ambiguity in relation to the declaration as well as the submission of details and supporting so CBDT issued Form No 12BB so as to standardize same.

Rent Paid / Payable for:

PARTICULARS	MAX BENEFIT PERMISSIBLE (RS.)	REMARKS	Dcouments Required
Life Insurance Premium	Maximum amount eligible for Deduction under section 80C & 80CCC Categories is Rs.1,50,000/-	Self , Spouse & Children only	Copy of PremiumPayment Receipt
Public Provident Fund (PPF)		Self , Spouse & Children only, Submit PPF challan or PPF passbook front page with entries	Copy of Payment Receipt / Passbook
Provident Fund (PF)		Deducted from salary	EPF No If any To be mentioned
Pension Fund Contribution		Self only	Copy of Premium Payment Receipt
National Savings Certificate (NSC)		Self only	Copy of NSS Certificate/s
Interest Accrued on NSC (Reinvested)		Self only	Copy of NSS Certificate/s
Unit Linked Insurance Policy (ULIP)		Self , Spouse & Children only	Statement of Holding along With Purchase dates
ELSS or a Specified Tax Saver Plan  (Lock in period of 3 years)		Self only	Statement of Holding along With Purchase dates
Payment of Tuition fees for Children                (Max 2 Children) for Full Time Education only.		Two children only	Copy of Payment Receipt from School
Sukanya Samriddhi Account (SSY)		Only Girl Children	Copy of Payment Receipt / Passbook
Principal repayment of Housing Loan		Self & Joint a/c holder	Certificate from Bank / Financial Institution
Registration charges incurred for Buying House   (I year Only)		Self only	Copy of Stamp Duty Paid/ Copy of Registration
Scheduled Bank Fixed Deposit for 5 Years & above		Self only, Stipulated Bank Stamp Required	Copy of FD Receipt
Term Deposit for 5 years & above		Marked as “for Income Tax purpose only”
PARTICULARS	MAXIMUM LIMIT (RS.)	REMARKS	Documents Required
Sec. 80CCD (1B) National Pension Scheme	Rs. 50000/-	Amount contributed to National Pension Scheme by employee	Copy of Payment Receipt / Passbook
Sec 80D (Medi Claim Policy & Preventive health check up)	Rs. 25000/- (or) Rs.30000/-)	Medical Insurance Premium PAID by Employee:	Mediclaim Policy Copy or Premium Certificate/ Original Medical Bills for preventive Checkup ( Payment has to be Made by Cheque Only
(Overall limit proposed in Budget 2016 – Rs.30000/-)		– on the health of employee, spouse, and dependent children (Payment must be made by cheque only).
		[Rs.30,000/- In case an employee is a Senior Citizen] (i.e., 60 years or more).
		Payment made by an employee  for preventive health check-up of self, spouse, dependent children during the financial year is eligible for the maximum deduction of Rs 5000.
		The amount  paid is within the overall limits ( Rs.25000/Rs.30000)
	Rs. 25000/- (or) Rs.30000/-)	Medical Insurance Premium PAID by Employee:-on the health of parents (even not dependent on employee) (Payment must be made by cheque only)	Mediclaim Policy Copy or Premium Certificate/ Original Medical Bills for preventive Checkup ( Payment has to be Made by Cheque Only
		[Rs.30,000/- In the case  parents are  Senior Citizen]i.e., 60 years or more
		payment made by an employee  for preventive health check-up of  parents during the financial year is eligible for the maximum deduction of Rs 5000.
		The amount  paid is within the overall limits ( Rs.25000/Rs 30000).
Sec 80DD (Maintenance including Medical treatment of the dependent person with the disability)	Rs. 75,000/- and Rs. 1,25,000 for severe disability)	Here Employee gets  fixed amount of deduction.If the employee has incurred any expenditure/deposited in specified policy.	Certificate from Prescribed Authority in Form No. 10-I Sec. 80 DDB
Sec 80E (Education Loan)	No limit	Interest on Loan taken for Higher Education:	Certificate from Bank / Financial Institution
Please mention Initial Year  (Year in which Interest payment started)	(only Interest Portion)	Amount paid by employee during the financial year on loan taken for higher education of
		– Employee, spouse or children of employee or students for whom employee is a legal guardian
		Benefit Period:
		Upto 8 years from initial year
Donations	Under Section 80G	Receipt should have Name, Pan No of donee and section under which the benefit is available.( Subject Various Limits & Exclusions )	Copy of PAN Card of Institutions, Copy Of Cheque, Bank Statement Reflecting Clearing of Cheque, Original Receipts ( Duly Stamped and Approved, with Full Details of Validity of 80G exemptions, address,etc)
Sec 80U (For the person with a disability)	75,000/- and Rs. 1,25,000 for severe disability)	Here Employee gets fixed amount of deduction.
ARTICULARS	Please Fill in	Remarks	Documents Required
Complete Details of the ccommodation	Please enter your Monthly Rent details as per the Rent Receipt / Lease Deed, with necessary details as Tenant Name, Owner name, rented property address, PAN no of owner, payment details, revenue stamp.	Original Rent Receipts every month (with Revenue Stamp if amount paid is above Rs. the 4999/-) and Rent Agreement. Receipt should contain PAN of Landlord if Rent for the year exceeds 8300/ p.m.     Copy of Landlord PAN and Registered Lease agreement Copy of Rent Paid Exceed 8300 p.m.
Apr-16			Note:-
May-16	Name of Landlord
Jun-16
Jul-16
Aug-16	Address of Landlord
Sep-16
Oct-16
Nov-16
Dec-16	PAN of Landlord
Jan-17
Feb-17
Mar-17
TOTAL	Sum  of 12 Months mentioned Above
Medical Bill Reimbursement	1250/- every month	Applicable upto the extent of the CTC/Gross SalaryComponent, if any	Original Medical Bills (including Parents, Wife/Husband, Children)
Medical Expenditure for Parents (Very Senior Citizen) (not having Mediclaim Policy) -80D	Rs.30000	Applicable upto the extent of the CTC/ Gross Salary Component, if any	Original Medical Bills

On July 07, 2016 by www.taxexcel.net

Share It

No Comments

Read More

Click to Download the Automated Master of Form 16 Part A & B for Financial Year 2015-16 and Assessment Year 2016-17 [ This Excel Based Software can prepare at a time 50 employees Form 16 Part A&B for F.Y.2015-16]

Click to Download the Automated Master of Form 16 Part A & B for Financial Year 2015-16 and Assessment Year 2016-17 [ This Excel Based Software can prepare at a time 100 employees Form 16 Part A&B for F.Y.2015-16]

In a recent notification, income tax department has come up with a new form 12BB, which from now onwards has to be submitted if you want to claim your LTA, HRA and Interest on Home loan interest. It’s a single form, which you need to fill and attach all proofs and furnish all information related to these exemptions. This form will be applicable from June 1, 2016.

What all information is asked in Form 12BB?

Following is the list of various things you need to arrange before you fill up this form 12BB form

·             LTA (Leave Travel Allowance) – One has to provide all the proofs of travel like tickets, invoices, boarding pass (in case of flight) . More info here

·             HRA (House Rent Allowance) – For claiming HRA, If the rent paid is above Rs 1 lacs a year, one has to provide Name, Address and PAN of the landlord and Rent receipts.

·             Interest on Home Loan – To claim this, one has to furnish the name, address and the PAN of the lender organization

·             Deductions under 80C & Others – You will also have to furnish the details and proofs of the actual investments done under Sec 80C and others

You can download form 12BB here, It’s a PDF version & You can Download Form 12 BB here, it's a EXCEL FORMAT

Main reason to introduce this form 12BB?

The primary reason why this new form is being introduced is that till now there was no standard process to collect all the proofs and information regarding the various deductions. IT department thinks that with this new change, frauds will go down.  

You may no longer be able to provide fake bills to claim income tax deductions for leave travel allowance (LTA) and house rent allowance (HRA). Changes announced on Tuesday in reporting format for individuals claiming tax deduction on leave travel allowance (LTA), leave travel concessions (LTC), house rent allowance and interest paid on home loans is aimed at plugging leakages on account of fake bills, experts say.

So with this form, all the information will be captured at one place and even the employers will be made accountable for checking all documents and if the proofs are genuine or not.

On June 17, 2016 by www.taxexcel.net

Share It

No Comments

Read More