Form 12B | Meaning and Definition

What is Form 12B?

People who start working for a new firm or organization in the middle of the year must file Form 12b under Rule 26A. The form simply reveals information about the person’s prior earnings.

After the new employee completes Form 12b with all of the needed information, the new employer will issue a Consolidated Form 16 at the end of the year based on the information supplied by the new employee in Form 12b. The obligation to complete Form 12b falls on the employee, not the prior employers. The employee must complete Form 12b and attach Form 16 if one was given by the prior employer.

New employers can deduct the exact amount of TDS from their employees’ salaries when they submit this form, 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.