Income Tax Form 124: Employee Statement for Salary Declaration & TDS Deduction

Form 124 under the Income tax Act 2025 is a declaration submitted by employees to their employer to claim deductions, exemptions, and allowances while computing taxable salary and TDS liability. It replaces the earlier Form 12BB and enables employees to provide details of claims such as HRA, LTA, interest on housing loans, and deductions under relevant chapters, along with supporting documents. Filing the form is optional but essential if employees want their employer to consider tax benefits during TDS computation; otherwise, tax is deducted without such reliefs. The form contains employee details and claim particulars and must be submitted annually, either physically or electronically, to the employer. Certain conditions, such as furnishing the landlord’s PAN for high rent payments, apply. Overall, Form 124 ensures accurate tax deduction at source, minimizes excess tax deduction, and facilitates proper compliance between employees and employers.

Income Tax Department
Ministry of Finance, Government of India

FAQs on Income Tax Form 124 : Statement showing particulars of claims by an employee for deduction of tax under section 392(5)(b) of Income Tax Act, 2025

Form No. 124 – Frequently Asked Questions (FAQ)

Statement showing particulars of claims by an employee for deduction of tax u/s 392(5)(b) of the Income tax Act 2025

Q1: What is Form No. 124 and its use?

Ans: Form No. 124 is a statement furnished by an employee to his employer for availing benefit of deductions, exemptions, allowances while computing taxable salary and TDS liability. Any salaried individual who wishes the employer to consider his claim of tax benefits related to House Rent Allowance (HRA), Leave Travel Allowance (LTA), deductions related to Investment or expenditure or deduction of interest on housing loan, must file this form along with supporting evidence.

Q2: What are the different parts of the Form No. 124?

Ans: Form No. 124 has two parts, viz. Part A and Part B. Part A contains complete details of the employee.

Part B contains details of various Tax Benefits being sought by the employee along with specified annexures in support of such claims.

Q3: Is it mandatory for the employee to file Form No. 124?

Ans: Form No. 124 is to be filed only if the employee wants his claim of deductions or exemptions etc to be considered by the employer while estimating his taxable income and computing TDS liability.

Q4: What documents are required to be filed along with Form No. 124?

Ans: The documents/evidence to be filed with Form No. 124, for claiming various deductions/exemptions, are as follows:

Q5: Is the PAN of the landlord mandatory in Form No. 124?

Ans: Yes, the PAN of the landlord must be furnished if the annual rent exceeds ₹1,00,000. However, Aadhaar is not mandatory unless specifically requested by the employer^.

Q6: Can Form No. 124 be filed online?

Ans: It may be submitted to the Employer either electronically or physically. It is not required to be uploaded separately on the Income-tax portal.

Q7: What happens if Form No. 124 is not submitted to the employer?

Ans: In case employee does not file any claim seeking tax benefits through Form No. 124, the employer will deduct TDS on salary income without allowing benefit of any deduction /exemption.

Q8: Is Form No. 124 required for the standard deduction?

Ans: No. The standard deduction is allowed in every case and does not require a separate declaration in Form No. 124 or any other Form.

Q9: Can Form No. 124 include declarations for family-related expenses?

Ans: Yes, it can include declarations for children’s education fees (as part of investment declarations) and medical reimbursements or health insurance benefits, if allowed by the organization.

Q10: Can Form No. 124 be submitted if an employee changes jobs during the year?

Ans: Yes. The employee should also provide income and TDS details from the previous employer (via Form No. 122) to the current employer for correct TDS calculation.

Guidance Note on Income Tax Form No. 124: Statement showing particulars of claims by an employee for deduction of tax under section 392(5)(b) of Income tax Act 2025

Purpose:

Form No. 124 is used by an employee to furnish the details of different claims on account of deductions, exemptions, allowances and related evidence thereof to the employer so that correct amount of tax could be deducted at source after taking the claims into consideration accordingly.

It is provided u/s 392(5)(b) of the Income-tax Act, 2025 read with Rule 205 of the Income-tax Rules, 2026.

Who Should File:

Employee to current Employer

Frequency & Due Dates:

This form is to be submitted at the earliest possible so that tax liability could be computed and tax could be deducted accordingly. The form is to be filed once every financial year.

Structure of Form No. 124:

1. Part A: Details of the Employee: Name, Address, PAN, Contact Details and Tax Year.

2. Part B: Details of Claims and Evidence thereof

• • House Rent Allowance
  • Leave travel concessions or assistance
  • Deduction of interest on borrowing
  • Deduction under Chapter VIII-A & B
  • Other details to be attached as annexure

3. Declaration by Employee: Certification that particulars are correct and complete.

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 “₹”.