The investment declaration, Form 12BB, is provided to the employer so that they can claim tax benefits or rebates on employee investments and expenses. Because TDS would be subtracted from total adjusted income, this lessens the tax burden on employees. For all salaried taxpayers, Form 12BB is applicable. It must be submitted with legitimate evidence of expenditures and investments.
The deductions listed below can be claimed using Form 12BB:
- Allowances for house rent (HRA)
- Allowance for leave travel (LTA)
- Interest due on a mortgage
- Every deduction listed in Chapter VI-A
