Form 12BB – What is Form 12BB Means? How to fill form 12BB – Investment Declaration and Tax saving
.png)
Tax planning is important for every individual at the beginning of a financial year. In this post, we are going to discuss the significance of Form 12BB in the context of Investment Declaration and Tax Savings. Read On!
Every salaried individual plans tax in advance to help streamline the income tax deductions as per the regulations under the Income Tax Act, 1961. For most employees the TDS deductions on salary is done by the employers or the organization they work with. And it is the responsibility of the employee to submit the investment declaration in advance at the start of a financial year. This makes it easy to have the necessary assessments on income tax deductions.
If the taxable income of an employee exceeds the income tax limit even after tax exemptions, the employer deducts taxes from their salary in equal proportion on a monthly basis. This money is then remitted to the income tax department by the company. The form in which the standard investment declaration is provided is known as Form 12BB. We are going to discuss the important aspects related to the form in this post.
What is Form 12BB?
Form 12BB means a claim declaration statement that is used by an employee for tax deduction. Employees use this form to declare the investments that they are planning during a financial year to save tax.
Investment declaration is very important for every salaried employee. However, prior to the introduction of Form 12BB on 1 June, 2016, there was no standardized facility to declare investments. But, the introduction of the investment declaration form 12BB made it smooth for salaried people to reveal their tax deductions in a single form and submit it to their employer to claim tax exemptions or rebate in investments during a financial year. It also makes it easy for the employer to evaluate taxable income of the employee and to apply TDS as per the required norms.
However, it is important for the employee to know and understand the tax slab rates well to plan tax savings and investments accordingly. An employee should submit Form no 12BB at the end of a financial year and it applies to all salaried taxpayers. Hence, employees are required to keep documentary evidence of all tax planning investments to disclose at the end of a financial year.
Income Tax Slab Rates
The income tax slab rates apply to individuals/taxpayers as per the income thresholds that are defined by the government. Every taxpayer is expected to pay tax as per the income tax slab that applies depending on his/her tax liability.
Hence, taxpayers are required to evaluate tax liability depending on the tax slab and make investments accordingly in various tax saving vehicles. Once that is done, it becomes worthwhile to fill up the Form 12BB. This way a salaried individual can protect their net income.
The below list shows applicable form 12bb income tax slab rates for Individuals below the age of 60 years.
Applicable Income Tax Slab Rates for Taxpayers 60 years and below
Author Bio
Paybima Team
Paybima is an Indian insurance aggregator on a mission to make insurance simple for people. Paybima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. Paybima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.
Other Life Insurance Products
Latest Post
Your health insurance policy gives you a No Claim Bonus when you fulfil your policy term without needing to make a claim. Your premium payments will decrease step by step through this feature. The bonus system benefits everyone involved in the insurance process. It helps customers to practice better healthcare habits and brings savings on insurance expenses.
There is no question, in fact, that daughters bring a special kind of sparkle into our lives – along with an endless list of questions, a closet full of dresses, and some very specific birthday party themes. But beyond the laughter and everyday chaos, we need to understand that there is a real responsibility on our shoulders: making sure they grow to be healthy, strong, and ready to take on the world.
Marriage is built on shared dreams, countless compromises, and a commitment to protect each other through thick and thin. While love, trust, and communication form the emotional foundation of marriage, a little bit of financial planning doesn’t hurt either. This is exactly where spouse term insurance steps in — a simple yet powerful way to safeguard your future together.
When managing insurance policies, one term that often comes up is the “Grace Period.” It’s a window of opportunity provided after the premium due date, allowing policyholders to renew their insurance without losing accumulated benefits. However, this grace period does not work the same way across all types of insurance. Understanding how it differs between health, life, and car insurance is crucial for avoiding lapses and ensuring continuous protection.
In a world where flexibility and better service are increasingly expected, health insurance portability allows policyholders to move from one insurer to another without losing the benefits they’ve already earned. Introduced by the Insurance Regulatory and Development Authority of India (IRDAI), this provision empowers individuals to seek better coverage, improved customer service, or lower premiums without the fear of starting from scratch.
Speak to our Advisor
+91
