Monday, May 9, 2016

New form to claim tax rebate on LTA, HRA

New form to claim tax rebate on LTA, HRA

NEW DELHI: The income tax department has come out with a standard Form 12BB for salaried taxpayers to claim tax deduction on leave travel allowance concession (LTA,LTC), house rent allowance (HRA) and interest paid on home loans.

Taxpayers will have to furnish to their employers proof of travel in Form 12BB for claiming LTA,LTC benefits. In case of HRA, the Central Board of Direct Taxes (CBDT) requires employees to furnish details like name, address and PAN number of the landlord if the aggregate rent paid exceeds Rs 1 lakh a year.

For claiming deduction of interest on home loan, the name, address and PAN of the lender will have to be furnished. Evidence of investment or expenditure will have to be provided for claiming tax deduction under Chapter VI-A.

Chapter VI-A pertains to allowable deductions under Section 80C, Section 80CCC, Section 80CCD as well as other sections like 80E, 80G and 80TTA.

The CBDT, in the same order, also extended the time limit for depositing tax deducted at source (TDS) on transfer of immovable property from 7 to 30 days. Also, 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, the CBDT said. Under section 80C, a deduction of Rs 1.5 lakh can be claimed from total taxable income if invested spent in employee’s share of PF contribution, life insurance, etc.

Source : Economic Times

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