Form 12b is an income tax form submitted by an individual while joining a new company in the middle of the financial year. The primary objective of this form is to provide details of earnings from the previous organization. In accordance with Rule 26A, every new employee needs to submit Form 12b to their employer. Based on the information gathered from Form 12b, the new employer issues a consolidated Form 16 at the end of the year.
New employers can deduct the exact amount of TDS from their employees’ salaries when they submit this form, thereby reducing the chance of discrepancies. New employees, in particular, must file Form 12B along with additional proof of investments by March 31st. Nonetheless, they should file it correctly before submitting it to make the entire process go more smoothly.
Form 12b is filled based on the previous organization’s salary slip. Here are some main components included in Form 12B.