January Deadline: Salaried Employees Must Review Form 12BB to Cut TDS

• Salaried employees should review Form 12BB in January to prevent higher TDS and a reduced take-home salary in the final quarter.
• Employers conduct a final TDS "true-up" between January and March; an incomplete Form 12BB can lead to unproven claims being ignored, resulting in higher TDS.
• Early review allows employees to complete pending tax-saving investments, submit necessary proofs (rent receipts, home loan certificates, insurance), and fully utilize available deductions.
• Aligning Form 12BB with actual investments is critical to avoid mismatches between Form 16 and income-tax returns, which can trigger notices or scrutiny, as highlighted by Rahul Charkha.
• The introduction of Form 12BAA and increased compliance requirements necessitate closer coordination between HR, payroll, and finance teams, making accurate Form 12BB reporting more vital.

Why It Matters: Review Form 12BB by January to ensure accurate TDS, maximize tax savings, and avoid last-minute issues.