Overview
Form 12BB is the statement that every salaried employee submits to the employer at the start of the financial year (or whenever changes occur) to declare investments, exemptions, and deductions they intend to claim. The employer uses this declaration to calculate the correct TDS to deduct each month so that the employee neither pays excess tax nor falls short at year end.
In Tazk Payroll, Form 12BB also captures the employee's choice of Old Regime or New Regime, which decides how the government tax slabs and exemptions are applied.
Accessing Form 12BB
From the sidebar, expand TDS and click Form12. The Form12BB List page opens with one row per employee per financial year.
Form12BB List Columns
| Column | Description |
|---|---|
| Name | Employee name |
| Financial Year | Financial year for which the declaration applies (for example, 2025 – 2026) |
| HRA | House Rent Allowance amount declared |
| LTA | Leave Travel Allowance amount declared |
| Deductions | Total deductions claimed (Section 80C, 80D, etc.) |
| Action | Pencil icon to edit the existing declaration |
Top Controls
- + — Create a new Form 12BB declaration
- Search — Find a declaration by employee or financial year
Creating a New Declaration (+ button)
Click the + button on the Form12BB List page. The Form 12BB entry screen opens with these tabs:
- General — Financial Year, Effective Month, and the Regime selector
- HRA — House Rent Allowance details
- LTA — Leave Travel Allowance details
- Interest Borrowing — Interest paid on home loan / other borrowings
- Deduction — Other eligible deductions (80C, 80D, etc.)
General Tab — Choosing the Regime
The General tab has the following fields:
- Financial Year — Year for which the declaration applies
- Effective Month — The month from which the declaration takes effect
- OLD REGIME / NEW REGIME — Toggle to choose the tax regime
Old Regime vs New Regime
- Old Regime — Allows the employee to claim exemptions and deductions such as HRA, LTA, Interest on Borrowing, and Chapter VI-A deductions (80C, 80D, etc.). When Old Regime is selected, the HRA, LTA, Interest Borrowing, and Deduction tabs are enabled. After filling the General tab, click Next to move through the other tabs and complete the declaration.
- New Regime — Applies lower government slab rates but does not allow most exemptions and deductions. When New Regime is selected, only the General tab is shown — the HRA, LTA, Interest Borrowing, and Deduction tabs are hidden because they are not applicable. The form can be saved directly with Submit.
Editing an Existing Declaration (Pencil Icon)
Click the pencil icon in the Action column of any row to open the same Form 12BB screen with the existing values loaded. You can change the Financial Year, Effective Month, switch the Regime, and update any of the tabs (HRA, LTA, Interest Borrowing, Deduction) when applicable. Click Submit to save the changes or Cancel to discard.
Impact on TDS and Form 16
- The values declared in Form 12BB are used to compute monthly TDS during salary processing.
- At year end, the same data flows into Form 16, where it is shown as the deductions and exemptions applied while computing Tax On Total Income.
- If an employee changes the regime mid-year, the system recalculates TDS from the Effective Month onwards.
End-to-End Form 12BB Flow
- Open TDS → Form12.
- Click + to create a new declaration, or click the pencil icon to edit an existing one.
- In the General tab, select the Financial Year, Effective Month, and the Regime (Old / New).
- If Old Regime is chosen, click Next and fill the HRA, LTA, Interest Borrowing, and Deduction tabs as applicable.
- If New Regime is chosen, only the General tab is required.
- Click Submit to save the declaration, or Cancel to discard.
- The system uses this declaration to compute monthly TDS and the year-end Form 16.