Income Tax Form 122 Replaces Forms 12B & 12BAA for Accurate Salary TDS Reporting

Form No. 122, introduced under Section 392(4)(a) of the Income-tax Act, 2025, replaces earlier Forms 12B and 12BAA and serves as a consolidated declaration for salaried employees. It enables employees to report salary income from multiple employers, loss under house property, other income (excluding losses), and details of tax deducted or collected during the tax year. The form helps employers compute accurate tax liability and deduct correct TDS, reducing excess deductions and refund claims. Though not mandatory, it is beneficial for employees with multiple income sources or job changes within a financial year. The form includes Part A (employee details), Part B (salary from other employers), and Part C (other income, house property loss, and TDS/TCS details). It can be submitted offline or through employer systems and is not required to be filed with the income tax return, but supports accurate tax reporting and compliance.

Income Tax Department
Ministry of Finance, Government of India

FAQs on Income Tax Form 122 (Earlier Form Nos. 12B & 12BAA): Form for Reporting Income under Section 392(4)(a) of Income Tax Act, 2025 for Salary Deductions

Form for furnishing details of income u/s 392(4)(a) of the Income-tax Act, 2025

Q.1 What is Form No. 122?

Ans: Form No. 122 is a consolidated declaration submitted by an employee to his employer, reporting the following:

a. Salary income earned from any other employer during the same Tax Year including taxable allowances, perquisites, accretion to employee’s provident fund account and tax deducted by such other employer.

b. Loss under the head House property income.

c. Any other income (not being a loss) covered by other heads of income other than salary.

d. Tax deducted/collected during the tax year.

Q.2 Who is required to submit Form No. 122?

Ans: A salaried employee is required to file Form No 122 with his employer to report salary income from any other employer or in case he wishes to claim loss under the head House property income or report tax deducted/collected at source from any other income.

In other words, an employee with salary income from more than one employer or having income from various sources and having been subjected to TDS/TCS on various transactions is required to file such form. It is not meant for use by non-salaried persons.

Q.3 What is the purpose of filing Form No. 122?

Ans: Filing of Form No 122 is useful for the following reasons:

a) Reduced TDS: Employees can offset the tax already deducted or collected on other income against their salary TDS liability.

b) Fewer Refund Claims: By accurately accounting for all taxes paid at the source, employees are less likely to overpay tax and need to claim a refund when filing their Income Tax Return (ITR).

c) Simplified Compliance: It streamlines the process of reporting non-salary income for both employees and employers. It provides the employee a formal way to claim credits for taxes paid elsewhere, by accurate reporting to his employer through Form No 122.

In essence, Form No 122 provides a mechanism for employees to report income from more than one employer, claim loss from house property income and to get credit for taxes already paid on non-salary income, leading to avoidance of excess tax deduction.

Q.4 Is it mandatory to submit Form No. 122?

Ans: While not mandatory by law, it is beneficial to the employee as it ensures correct tax deduction, avoiding excess deduction and consequent filing of claim for refunds.

Q.5 When should Form No. 122 be submitted?

Ans: There is no prescribed time-limit within which Form No 122 is to be submitted, to the employer.

Q.6 What details are required to be filed in Form No. 122?

Ans: The form is divided into three distinct parts, viz. Part-A, B & C.

Part A requires details of the employee filing the declaration using Form 122.

In Part-B, Employee is required to fill particulars of the other employer and details of salary income earned from such other employer during the Tax year, including taxable allowances, perquisites, accretion to employee’s provident fund account and tax deducted by such other employer.

Part-C has four further sub parts:

Part C (1): Details of loss from House Property

Part-C (2): Details of any income chargeable to tax under any other head of Income besides salary but does not include loss of any kind

Part-C (3): Tax deducted at source on any income chargeable to tax under any other head of Income besides salary

Part-C (4): Tax collected at source

Q.7 Can Form No. 122 be submitted online?

Ans: It can be submitted offline or through the employer’s HR/payroll system, if available. It is not required to be uploaded on the Income-tax portal.

Q.8 Is Form No. 122 required to be attached with the return of income?

Ans: No. It is not required to be uploaded with the return of income but it is essential for accurate reporting of income and taxes deducted/collected in the ITR.

Guidance Note on Income Tax Form 122 (Earlier Form Nos. 12B & 12BAA): Form for Reporting Income under Section 392(4)(a) of Income Tax Act, 2025 for Salary Deductions

Form No 122 (Earlier Form Nos. 12B & 12BAA): Form for furnishing details of income under section 392(4)(a) of Income-tax Act 2025

Purpose:

Form No. 122 is used by an employee to furnish the following details relating to-

a. Salary income earned from any other employer during the same Tax Year including taxable allowances, perquisites, accretion to employee’s provident fund account and tax deducted by such other employer.

b. Loss under the head House property income.

c. Any other income (not being a loss) covered by other heads of income other than salary.

d. Tax deducted/collected during the tax year.

to the person responsible for making payment for the purpose of computing the correct tax liability of the employee and subsequent deduction of tax at source under section 392(1) of the Income-tax Act, 2025.

Who Should File:

An Employee should file Form No. 122 to the current Employer, if he has changed jobs during the same Tax Year.

Frequency & Due Dates:

It is expected that the form is submitted at the earliest possible, but not later than 31^st March of the Financial Year, so that tax liability could be computed and tax could be deducted accordingly.

Structure of Form No. 122:

1. Part A: Particulars of the Employee – Name, Address, PAN, Residential Status and Tax Year.

2. Part B: Details of Income under head “Salaries” due or received from other employer(s) u/s 392(4)(a)(i)

• Name, PAN, TAN of the other employer(s)
• Period of Employment
• Amount of Salary Paid or due to be paid to the employee excluding allowances & perquisites
• Amount of allowances to the extent chargeable to tax
• Value of Perquisites and amount of accretion to employee’s provident fund account
• Amount deducted in respect of life insurance premium, provident fund contribution, etc., to which section 123 applies
• Amount of tax deducted during the year

3. Part C: Details of particulars for the purposes of Section 392(4)(a)(iii), (iv) & (v)

• Loss under the Head ‘Income from House Property’
• Details of any other income (not being loss except loss under house property)
• Details of tax deducted/collected at source

4. Annexure to the Part B of the Form: Particulars of value of perquisites and amount of accretion to employee’s provident fund account –

• Value of rent-free accommodation or any concession in rent for the accommodation provided by the employer
• Value of free conveyance or conveyance at a concessional rate or use of one or more motor cars by an employee owned or hired by the employer
• Remuneration paid by employer for domestic and/or personal services provided to the employee
• Value of any travel concession or assistance to the extent chargeable to tax
• Estimated value of any other benefit or amenity (e.g. supply of gas, electricity or water etc.) provided by the employer free of cost or at a concessional rate
• Employer’s contribution to recognised provident fund in excess of 10% of the employee’s salary
• Interest credited to the assessee’s account in recognised provident fund in excess of the rate fixed by the Central Government

Brief Note on Qualitative Changes made:

Merger of Form 12B & Form 12BAA:

Since the purpose of both the forms is to capture the income & tax details of a particular employee from other employer(s) to arrive to the tax liability of an employee enabling the employer to deduct the correct amount of tax at source, both the forms have been merged. This merger will reduce the compliance burden of an employee since he/she has to file one single form only.

Common Changes made across Forms:

1. Tax payer (employee) details such as Name, Designation, Address, PAN etc. have been standardized.

2. Assessment / Financial / Previous year or years have been replaced with Tax year or years, wherever appearing in the Form/Annexure.

3. Changes related to Sections, Clauses and Schedules have been aligned as per the Income-tax Act, 2025.

4. Currency symbol “Rs.” has been replaced with “₹”.