House Rent Allowance (HRA)
The first head that shows under Form 12BB is HRA. You need to furnish details of your landlord along with his/her Permanent Account Number, address of the property and rent paid by you. If you are residing in a rented accommodation, then the HRA component of your salary becomes tax free, and hence reduces your TDS.
Leave Travel Allowance (LTA)
Did you know your travel exploits can help you reduce your taxable income? You can claim tax free Leave Travel Allowance aka LTA twice in a span of four years and save tax by submitting your travel and lodging bills.
Interest on Borrowing
Interest to be paid on any borrowings or loans from financial institutions, your employer or other lenders can be declared in advance to claim deductions on the amount payable.
Deduction under Chapter VI-A
The last part of Form 12BB is your investments. Plan this part well, and furnish details of investments you wish to make in the upcoming financial year that can be claimed for tax exemption under section 80C, 80CCC, and 80CCD. You must also furnish details of any education loan to claim exemption under section 80E, intended donations to benefit from section 80G, etc.
On the other hand, if you use your own vehicle for work, then you can get your salary restructured and make way for claiming fuel expenses, driver’s salary, insurance and maintenance expenses of your car.
Similarly, expenditure on books, newspapers and periodicals, fee paid towards any professional courses too is tax free and can be reimbursed.
Your telephone bills, mobile bills and internet expenses can also be reimbursed to reduce TDS.
Food coupons like Sodexo is another way employees can reduce their TDS and enjoy tax free income.