Income Tax deduction new form 12BB for LTA LTC claiming deduction in Income tax returns filing.
Income Tax department with order from CBDT (Central Board of Direct Taxes) has brought form 12BB this assessment year. Every year after completion of financial year IT advance tax and returns filing for finished financial year. Now to a new clause added in tax deduction for claiming employees expenses.
Up to now only utility bills, bank interest, credit card interest, Rents paid, donations made in IT clauses are exempted in IT. When an income generated has crossed ceiling designated by IT department one has to pay certain amount of tax.
Now claiming of LTA LTC Leave travel concession or leave travel allowance etc are now eligible to claim in Income tax deduction of tax to be paid. One lakh rupees are allowed to show under LTA LTC categories. If any employee has below one lak rupees of Travel expenses either in his business or job travels they can file them using form 12BB. All high perks and salaried employees need to furnish a proof of travel to get tax deduction claiming on LTA or LTC.
To furnish these details using from 12BB one must include Name, Address, PAN number, HRA etc. House Rent Allowance which paid 1 lak above under CBDT order. Central Board of Direct Taxes which issued form 12BB has provision to claim deduction of Home or business loan interest, when linked with tax payee details.
Advance tax payers or assessment payment holders can claim these deductions in their final income tax under following provisions. Chapter VI-A has sections of 80C, 80CCC, 80CCD along with 80E, 80G, 80TTA.
New rule 26C with form 12BB requires employees who show their HRA, LTA, LTC under the head Income from house property. Above passed order and 12BB form will come into affect from June 1 2016 fall of first quarter in 201-2017 financial year.
CBDT also cleared that tax deduction of 1.5 lak from total taxable income invested in PPF, Shares in PF contribution, Insurance paid amount, Children education fees, Principal repayment of home loan, Savings account under Sukanya samridhi account and other PM schemes.
New reforms also has a provision for deductions on home loan interest of rs 50000 per year for new house owners bought under 50 laks. If the value of the property purchased is less than 35 laks 50000 can be shown to deduct.There is also a facility to minus the amount of net tax payable income for 25000 medial insurance.