Turbocharge Your Income Tax Returns Now
Filing an Income Tax return (ITR) is crucial in India if your income is above the basic exemption limit. It’s common for an individual to shift from one job to another job if he feels he can get more compensation for the work done by him.
While leaving the previous Job and getting into a new one, the employee must fill Form 12B for his new employer in order to save his money to get out of this pocket for an extra payment of Income Tax
Let’s learn about-
- Form 12B
- Contents of Form 12B
- Preparation of Form 12B
- Proforma of Form 12B
- Consequences of not submitting Form 12B
Form 12B
It is a declaration form submitted by the employee to the new employer. Form 12B must be submitted to the new organization when an individual quitting their previous employer mid-year (FY) joins a new organization. Submitting this form is optional.
Contents of Form 12B
The employee has to fill all the fields in Form 12B before submitting it to the new employer.
Form 12B contains the following information-
- Information regarding previous Employer including, PAN and TAN
- Breakdown of company costs, including basic salary, Dearness Allowance, House Rent Allowance (HRA), Prerequisite, Leave Encashment, Leave Travel Allowance, and fringe benefits.
- Provident fund deductions
- Deduction u/s 24 and Chapter VI (A) Deduction like 80c, 80G, 80D, and 80E.
- Tax Deducted at Source (TDS) by the previous Employer.
- Professional Tax paid by the Employee (if any) in the FY in which Employee switches to the new organization.
Preparation of Form 12B:
It is the responsibility of the Employee to prepare Form 12B and submit it by attaching it with Form 16 to the new Employer.
Here is a step-by-step guide to preparing Form 12B-
Step 1: Gather all Documents
Collect all your salary certificates, Form 16, and any other relevant documents that contain details of your income and deductions.
STEP 2: Fill in Personal Information
Start by entering your personal information in the designated fields, making sure all the details are accurate.
Step 3: Provide Salary Details
Carefully mention your salary components, such as basic pay, allowances, and perquisites received during your previous employment.
Step 4: Declare Deductions
In this step, declare the deductions you are eligible for, including investments, insurance premiums, and other tax-saving measures.
Step 5: Mention Other Income
If you have any additional sources of income, disclose them accurately in the form.
Step 6: Recheck and Submit
Before submitting Form 12B to your new employer, double-check all the information you’ve provided to avoid any errors or omissions.
Proforma of Form 12B:
Click here to download the file in pdf.
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