Change in Reporting format of LTA/ HRA by Income Tax Dept

The income tax department has announced changes in reporting format for individuals claiming tax deduction on leave travel allowance, leave travel concessions , house rent allowance and interest paid on home loans.

At Present, employees claiming tax deduction file self-declarations to employers with regard to tax savings/deductions along with the evidences for each financial year. Employer deducted tax at sources on the estimated income of employees, after considering such self-declarations of tax savings. There was no prescribed format for filing the declarations.

Accordingly, to bring clarity vis-a-vis the declaration to be filed for deductions claimed by employees, a prescribed form (Form 12 BB) has been introduced (under rule 26C).

Following are the key particulars under Form 12BB:

Thus, the new format would now ensure collection and maintenance of information in a defined format, which could further assist in streamlining the assessment process, due to standardization of information so collected and produced to the tax authorities.