Form 12B in India - Change of Employment

What is Form 12B?

Form 12B is a document that contains information about the income and tax deducted from the previous employer. It is mandatory for employees who have changed their jobs during the financial year to submit Form 12B to their new employer. This will help the new employer to calculate the correct tax liability and deduct the appropriate amount of tax from the salary. Form 12B should be submitted to the new employer within 15 days of joining the new organization.

What is to be filed in Form 12B?

Form 12B is a document that contains the following information:

• The address and name of the employee and their Permanent Account Number and Aadhaar Number
• The residential status of the employee
• The name and address of the previous employer(s) and their TAN and PAN or Aadhaar Number
• The period of employment with each employer
• The particulars of salary as defined under section 17
• The amount deducted in respect of life insurance premium, provident fund contribution, etc., to which section 80C applies
• The total amount of tax deducted during the year by each employer
• The particulars of the value of perquisites and amount of accretion to the employee's provident fund account
• The signature and verification of the employee

What are the differences between Form 12B and Form 12BA?

Form 12B and Form 12BA are income tax forms related to salary income but have different purposes and contents. Form 12B is a form that an employee has to submit to the new employer when he or she switches jobs during a financial year. It contains the details of the income earned and the tax deducted by the previous employer. It helps the new employer calculate the correct tax amount to be deducted from the employee's salary for the remaining part of the year.

Form 12BA is a form that an employer has to issue to an employee when the salary paid or payable to the employee exceeds ₹ 1,50,000 in a year. It contains the details of the amenities, perquisites, and other fringe benefits given by the employer. Perquisites are benefits that an employee receives on account of his or her job or position, such as rent-free accommodation, stock options, contribution to the superannuation fund, etc. Form 12BA helps the employee report these benefits as part of his or her or her taxable income and claim deductions if any.

To whom and by when should Form 12B be submitted?

Form 12B is required to be submitted by the employee after joining the new organization during the middle of the financial year. Form 12B needs to be submitted to the new employer. Submitting Form 12B helps the employer to know your previous employment details and calculate the correct amount of TDS for the rest of the financial year.