What is the use of form 12B in tax? How its different from 12BA

As per the provisions of section 192 of the income tax act, 1961, employee may furnish salary details incurred from previous employer to the current organization. If the employee has decided to furnish salary details to present organization, then it has to be reported in form 12B.

As per rule 26A, Form 12B is a declaration to be submitted with following details in it:

  1. Name and address of the employer
  2. TAN of the employer
  3. Permanent Account Number or PAN of the employee
  4. Period of employment
  5. Total amount of salary
  6. Break up of allowances and perquisites
  7. TDS amount already deducted
  8. Deduction and expenses declared under section 80C to 80U

You can fill up these details on your own from your monthly salary slips. Mentioning details in Form 12B helps the current organization to calculate your tax liability accurately.

How do i get form 12B?

Form 12B is to be submitted by those who join a new company or organisation in between of the previous year. Your previous employer salary income with the details as mentioned above has to be disclosed in it.

Please note, it’s the responsibility of the employee to provide form 12B with all the details to the current organisation. Your current organisation will not get it from previous employer.

Here is a link to download Form 12B. You need to fill up details based on your pay slips received from previous employer. It will be easier for you if you can fill it up before your joining date with the current organisation.

What if form 12B not submitted to current organisation?

Submission of form 12B is not mandatory. However in case of non submission, you have to do the following:

  • If previous year is not over, then you can disclose your salary income incurred from previous employer to current organisation to recompute tax liability. In this case you will not be paying interest liability as your current organisation will be deducting final tax liability before march end.
  • If the financial year is over, assessee can pay the differential tax amount by recomputing total income of the whole year at the time of filing return of income. However if your differential tax liability is more, then you will be paying interest penalty in addition to the tax amount.

In general employer use to give time limit to submit all the details before a cut off date. It can be January last or February last. After the cut off date, they may not accept form 12B from you. In this case you can recompute your tax liability to pay the differential amount of tax at the time of filing return of income.

What is the difference between form 12B and 12BA

As discussed above, form 12B is submitted by the employee to the current organization when you join in the middle of the financial year. It has details like TAN and PAN of the employer, details of salary income and TDS amount deducted out of it.

You can download it from the link given above in this article to know what are the details required to be filled up.

Form 12BA is a statement given by employer to employee. It has all the salary details received by the employee during the year of employment. Its issued along with TDS certificate in form 16.

If you have worked for more than one employer, then each one of them should issue form 16 and 12BA for the salary and TDS amount deducted. Both 12B and 12BA comes under the circular of rule 26.

is a fellow member of the Institute of Chartered Accountants of India. He lives in Bhubaneswar, India. He writes about personal finance, income tax, goods and services tax (GST), company law and other topics on finance. Follow him on facebook or instagram or twitter.