Form 12BB is a declaration form submitted by salaried employees to their employer for claiming tax deductions on various investments and expenses under the Income Tax Act, 1961. It ensures that the employer accurately calculates TDS (Tax Deducted at Source) on salary based on eligible deductions such as house rent allowance (HRA), leave travel allowance (LTA), interest on home loan, and investments under Section 80C, 80D, and 80E.

For companies managing contract workers, gig employees, and blue-collar workforce, ensuring proper Form 12BB submission streamlines payroll tax compliance, prevents excess tax deductions, and simplifies employee financial planning. Organizations leverage HRMS platforms and payroll automation tools to track employee tax declarations, verify deductions, and maintain compliance with tax regulations. A well-structured Form 12BB process enhances payroll efficiency, tax transparency, and employee satisfaction.