Can I Claim Savings While Filing ITR Despite Submitting 12BB to My Employer?

Many salaried individuals often face the dilemma of whether to claim certain tax savings when filing their Income Tax Returns (ITR) if they have already submitted a Form 12BB to their employers. This article aims to clarify this issue and provide guidance on the best practices.

Understanding Form 12BB

Form 12BB is an important tool used by employers to claim deductions related to certain ESI (Employer State Insurance) contributions, life insurance premium payments, and subscriptions to Employee Provident Fund (EPF) and pension schemes. If you have submitted Form 12BB to your employer for tax benefits, your total income and related deductions might not be fully reflected in your employment records.

Claiming Further Deductions While Filing ITR

Yes, you can still claim additional tax savings under Sections 80C and 80D while filing your ITR, even if your 12BB submission has already included some forms of deductions. This is a common misconception, but underscoring the rule, you can claim additional tax benefits that were not disclosed to your employer as part of the Form 12BB.

Eligible Deductions Under Sections 80C and 80D

The following deductions fall under Sections 80C and 80D respectively and can be claimed:

Section 80C: Contributions made to: EPF and EPFO (Employees' Provident Fund and Employees' Deposit Linked Insurance Scheme) NCopS (National Pension System) Housing Loan Repayments SMS (Senior Citizens' Savings Scheme) RBI Public Provident Fund (PPF) Other specified investments and schemes Section 80D: Deductions for: Health insurance premium for yourself, spouse, and dependent children Medical/health expenses for yourself, spouse, and dependent children

Practical Steps for Claiming Additional Tax Savings

To claim additional tax savings while filing your ITR, follow these practical steps:

Keep Copy of Investment Documents: Ensure you have all the necessary documents, such as receipts and confirmations, for the investments or payments made under Sections 80C and 80D. These documents will serve as evidence when filing your ITR. Review Your ITR Form: Double-check your ITR form to ensure that all eligible deductions are mentioned. This includes any deductions under Sections 80C and 80D that were not claimed through Form 12BB. Submit Your ITR: Once your ITR is filled in correctly and all the necessary documents are attached, submit it as per the prescribed deadlines.

Conclusion

It is perfectly legal and advisable to claim additional tax savings through Sections 80C and 80D while filing your Income Tax Return, irrespective of any deductions already claimed through Form 12BB to your employer. However, accurate record-keeping and thorough documentation are crucial to avoid any potential issues during the tax compliance process.

Frequently Asked Questions (FAQs)

Q: Can I claim both Form 12BB and additional deductions for the same investment?

A: No, you cannot claim the same investment twice. However, you can claim the investment in full under Section 80C or Section 80D during the ITR filing process, provided it was not already claimed through Form 12BB.

Q: What happens if I do not disclose additional deductions?

A: Failing to disclose additional deductions might result in penalties or underpayment of taxes. Always ensure accurate and complete disclosure of all eligible deductions when filing your ITR.

Q: Can I adjust my TDS based on additional deductions claimed?

A: TDS (Tax Deducted at Source) is typically based on the information provided by your employer. If you claim additional deductions through your ITR, it may affect your TDS adjustments, hence it is advisable to inform your employer of any relevant changes.