Submit proof of travel for claiming tax deduction on LTA: CBDT

The Income Tax Department has brought out a new form making it mandatory for salaried taxpayers to furnish proof of travel for claiming tax deduction on LTA or LTC. The Central Board of Direct Taxes (CBDT) has brought in a Form 12BB form requiring employees to furnish to their employers with evidence in relation to house rent allowance (HRA) if it exceeds Rs 1 lakh in an assessment year.

The details to be furnished include name, address and PAN of landlord where the aggregate rent paid exceeds Rs 1 lakh, according to a CBDT order. For claiming deduction of interest on home loan, the name, address and PAN of lender will have to be furnished. Similarly, for claiming tax deduction on leave travel allowance/concession (LTA/LTC), the new rule makes it mandatory for employee to furnish to his employer evidence for travel expenditure.

Also 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. These are part of new Rule 26C and Form 12BB that require employees to furnish to the employer, evidence/particulars in relation to house rent allowance (HRA), leave travel concession (LTA), deduction of interest under the head 'income from house property' and deduction under Chapter VI-A. 

CBDT, in the same order, also extended the time limit for depositing tax deducted at source (TDS) on transfer of immovable property from 7 days 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, CBDT said. Under section 80C, a deduction of Rs 1.5 lakh can be claimed from total taxable income if invested/spent in PPF, employee's share of PF contribution, life insurance premium payment, children's tuition fee, principal repayment of home loan, Sukanya Samridhi Account among others. Section 80CC provides for deduction on amount deposited in annuity plan of LIC or any other insurer for pension while Section 80CCD is for the same purpose on contribution to Pension (Section 80CCD).