Form 12B is an Indian income tax form that needs to be filled by an individual joining an organisation in the middle of the year. This form is not a mandatory one but is advisable to be filled as it helps the new employer to see the TDS from the previous employer and thus shows excesses or shortfalls of income tax, if any.
It is entirely an employee’s responsibility to fill in Form 12B. The new employer will not make it mandatory for this form to be filled. Once the form is filled, it is the current employer’s duty to calculate the TDS deductions on the individual’s salary based on the TDS deducted by the previous employer. It is also important to declare PF, IT, professional tax that are deducted by his / her previous employer. One can make use of the form 16 provided by the previous employer to fill form 12B.
To fill Form 12B, the following details need to be furnished:
● Tax artefacts of previous employer such as PAN number, TAN number, etc.
● Complete break up of salary structure of the previous employer. This can be obtained from the appointment letter as well as from the pay slips.
● Provident Fund deductions.
● Professional Tax deductions.
● Other deductions of Income Tax acts such as section 80C, 80G, 80E, etc.
● TDS on salary by previous employer.
● Deductions towards rent free accommodation.
Form 12B, though not mandatory, is generally recommended to be filled when joining a new organisation and it’s a whole of the employee interest to submit 12B failing which will leave him/her liable to depositing of advance tax. This helps the new employer to calculate the correct taxation amount and also avoids duplication of TDS on the employee’s salary.
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