Form 12B - How to Get Online & Download?

What constitutes Form 12b?

The employee has to fill in some details in Form 12b before submitting it to the new employer. It is very important that the individual fill in the correct details in the form.

Listed below are the details that one has to provide in Form 12b before submitting it to the employer.

1. Certain details of the previous employer such as PAN number, TAN number, etc
2. Break-up of the total salary such as Basic Salary+ DA, House Rent Allowance, Prerequisite, Leave encashment, Leave Travel Allowance and other such parts of the salary.
3. Deduction in respect to Provident fund
4. Deduction in regard to rent free accommodation
5. Any deductions under various sections of Income Tax Act including Section 80C, Section 80G, Section 80D, Section 80E, Section 24
6. Tax Deducted at Source on Salary deducted by the previous employer
7. Professional tax paid by the employee(if any)

What happens after the Employee submits the Form 12b?

Once the employee submits Form 12b with the correct details required, the new employer will furnish a Consolidated Form 16 at the end of the year based on the details provided by the new employee in Form 12b.

Why is Form 12b Important?

The main purpose of Form 12b to the new Employer and employee is outlined below:

1. New hires are required to submit Form 12b and additional investment documentation by 31 March. This process can be accelerated if they file it accurately. 
2. Form 12b is beneficial to the new employer because it includes details regarding the new employee's previous salary and deductions. Therefore, this facilitates businesses in appropriately deducting TDS from an employee's yearly gross pay.

When Should You Submit Form 12b?

Form 12b must be submitted by any employee who changes jobs in the middle of the financial year. They have to give the form to their new employers when they shift jobs.

However, if self-employed professionals accept a full-time position during the financial year, they do not have to submit Form 12b. It is only available to salaried employees who are changing jobs.

Information Required to Form 12b

1. A statement that is signed by the employee and includes the data from Form 12B, the date, the location, and the employee's name.
2. TAN or PAN of the employer
3. Proof that rent is paid by the employee
4. Cost of the rent-free housing offered by the employer, broken down into separate columns for furnished and unfurnished housing

How to Fill Form 12b?

The following fields need to be filled out while completing Form 12b:

1. Name and location of the former organisation
2. The previous employer's PAN or TAN
3. Duration of employment
4. Earnings obtained over the course of the financial year before joining the new company
5. The amount is credited to the provident fund, if relevant
6. HRA, DA, leave encashment, and other benefits are included in the pay breakdown
7. Section 80C allows writing off certain expenses, such as life insurance premiums

1. Total tax deductions for the financial year

For the first annexure, details regarding the employers' offering of rent-free housing are needed. This includes information on furnished and unfurnished apartments as well as any furnishing requirements. The second annexure contains information from the previous employer, which includes a conveyance allowance and other equivalent incentives.

Difference between Form 12b and Form 12ba

Forms 12b and 12ba are issued in accordance with Income Tax Act Rule No. 26, but they serve different purposes. The following are their primary differences:

1. When a salaried employee moves to a new company in the middle of the financial year, they have to fill out Form 12b and submit it to the new employer along with details about their income, TDS, etc. On the other hand, a comprehensive breakdown of all profits, benefits, and other non-salary income.
2. Form 12b is a statement that must be provided by the employee to a new employer if they are hired during the midst of a financial year. Form 12ba is a statement of benefits that the employer is required to provide to the employee.