Form 12B plays a crucial role in income tax filing for employees who switch jobs during a financial year. It allows individuals to declare their previous employer's salary and tax details to their current employer to ensure a smooth income tax filing process.
When you change jobs within a financial year, you get Form 16 from your previous employer. If you worked for more than one employer, you need to combine your income from all sources to calculate your taxes accurately. For this, you can use Form 12B to consolidate your income from multiple employers and calculate your income tax precisely.
The contents of Form 12B include various details that you need to provide to your current employer regarding your previous employment.
Typically, the previous employer must provide Form 12B with the necessary details duly filled in. Alternatively, you can download Form 12B from the official Income Tax Department website and fill it out yourself.
Accurate and timely filingfilling of Form 12B is crucial for precise income tax calculations. Here's a step-by-step guide on how to fill out Form 12B:
After accurately filling out Form 12B, employees must submit it to their current employer. Watch out for common mistakes like providing incorrect information, missing essential details, or submitting the form after the deadline.
Form 12B simplifies income tax filing for individuals who switch jobs within a financial year by accurately declaring income and tax details from previous employers. Tracking personal finances diligently is also important for maintaining financial health.
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Form 12B is a statement of income and TDS deducted by previous employer(s) during the financial year. Employees submit it to their current employer at the start of new employment.
Form 12B consolidates income and tax deductions from multiple employers for the entire financial year, helping taxpayers accurately assess their tax liability and avoid underpayment or overpayment of taxes. It also assists current employers in making accurate Tax Deducted at Source (TDS) deductions.
Form 12B requires taxpayers to provide personal information such as name, PAN, and address; details of current and previous employment; salary components such as basic pay, allowances, and perks; TDS details; deductions claimed under different sections of the Income Tax Act; and any exemptions availed.
Form 12B is not limited to salaried individuals alone. It is also relevant for pensioners who receive a pension from their previous employer and need to declare their income and TDS details for accurate tax calculations.
Form 12B helps current employers calculate accurate tax liability by factoring in total income and TDS from previous employers. This ensures proper TDS deductions, aligns tax liability with actual earnings, and affects potential refunds or additional tax payments.
