Keep in mind the following points before filing form 12BB

Before filing form 12BB, the assessee should keep in mind the following points, if the declaration is not submitted properly with their evidence, it may cause whether TDS will be deducted by high amount or less amount.

In case of excess amount of TDS deducted from their salary, which could upset their monthly budget or say even in March the whole amount of salary will be deducted because of TDS. The excess amount of TDS will be refunded after filing of income tax return.

In case less amount of TDS deducted, you have to pay interest u/s 234B & 234C.

1. Investment plans – You have to make investment plans to keep in mind the last years investments, in which you are interested and claim Deductions under Section 80C to 80E. You can also plan the following-
   • Plan to invest Rs. 1,50,000 u/s 80C- First you have to calculate the amount of tax-saving expenses like insurance premium, children’s tuition fees, EPF Contribution, home loan repayment, etc. that has to be made during the year.
     Deduct the above amount from Rs.1,50,000 to know how much balance amount is to be invested. This amount can be invested in any of the following schemes to avail deductions under section 80C/80CCC/80CCD(1):
     1. Tax Saving Fixed deposits with banks (5 Years)
     2. Public Provident Fund (Interest on PPF is exempt from tax)
     3. National Saving Certificates
     4. Unit Linked Insurance Plan
     5. Equity Linked Saving Schemes
     6. Sukanya Samridhi Yojna
     7. Life Insurance premium
     8. Repayment of Housing Loan

     In addition to this, Deduction under section 80CCD (1B) is allowed up to Rs. 50,000. Investment in National Pension Scheme (NPS) is the best and only solution available to save tax.

   • Plan your Mediclaim Policy u/s 80D-

     Medical insurance not only provides you support at the time of need, but also a good way to save tax under section 80D-

     Amount of deduction allowed is as follows: -

     Particulars	Self, spouse and dependent children	Parents (dependent or not)	Total amount allowed
     If Self, Spouse, Children and his Parents are below the age of 60 years	25,000	25,000	50,000
     Self, Spouse & Children are below the age of 60 years but his parents are senior citizen	25,000	50,000	75,000
     If  an assesse self, his spouse and parents are senior citizens	50,000	50,000	100,000

     Make sure that Premium is not to be paid in cash. It can be in form of cheque/ DD only.

     Deduction amount for senior citizens has been increased from Rs. 30,000 to Rs. 50,000 from the financial year 2018-19.

      

   • Interest on Home Loan- If you have home loan, you can claim the deduction for Interest on Home Loan (whether property is self occupied or not self occupied) (U/S 24) will serve as one more cherry on the cake.
     1. Self occupied property:-

        Deduction is allowed for interest paid on housing loan up to Rs. 2,00,000/-.

     2. Not self occupied property:-

        There is no limit of deduction for interest paid on housing loan.

   • Interest on Education loan- If you availed any education loan for higher studies for self, spouse, dependent children, you can claim the interest deduction u/s 80E, up to the eight assessment years. There is no maximum amount of deduction limit.
   • House Rent Paid- If you are living on rented accommodation, you can claim HRA exemption.
   • Leave Travel allowance- If you have availed LTC/LTA during the year. You can claim the exemption regarding your visit to India, to the extent of travelling expenses for your family. So keep the expenses of travelling like tickets to claim the above benefit.
2. Note your investment amount- You must note the investment plans or amount of investment, which you had invested during the year, say under section 80C, 80D, Interest on housing loan, Interest on education loan, Rent paid during the year or any payment which is in your mind. Your noted investments can escape you from fraudulent investments declaration.
3. Collect and keep all proofs at one place- Third, you have to collect and keep all proofs at one place, which are relating to your noted investments and payments. You have also kept in mind in respect of rent paid, if it is greater than Rs. One lakh during the year, PAN of landlord.
4. Reconciliation of you planned investments with their proofs- Forth, you have to reconcile your investment plans with their proofs of investments kept in your record. If any discrepancy reconciles the same and strong your mind that no mistake is done.
5. Submit your proofs with in time framed- now you feel free to submit your proofs without any mistake even on the time framed by your employer.
6. Never declare fraudulent declaration- In last, you should keep in mind that never declare fraudulent declaration in form 12BB, because fraudulent declaration can raise big issue related to income tax for you in future. So, never think about fraudulent declaration.

The above process makes you easy to file form 12BB without any mistake or fraudulent. It also helps to file your income tax return with in time frame work.