What is Form 12B? Meaning, Download PDF & How to Get Form 12B

Switching jobs in between the financial year is common in India. However, the most important formality of submitting Form 12B to the new employer is often overlooked. 

Without Form 12B, the new employer will have no idea about the previous employment earnings, leading to improper deduction of TDS, a surprise tax due during ITR filing or even notice from the Income Tax Department. 

What is Form 12B?

Form 12B is a declaration requirement under Rule 26A of the Income Tax Rules, 1962. It is submitted by salaried employees to the new employer, while switching jobs during the year.

Form 12B is a declaration of the income earned during the previous employment during that financial year including salary, allowances, perquisites, and TDS already deducted. This information allows the new employee to calculate and deduct the right amount of TDS for the remaining months. 

When is Form 12B Required?

Form 12B is required by salaried employees while switching jobs within the same financial year i.e., between 1st April and 31st March. The new employer deducts TDS based on the total income earned by the employee for that year. 

Purpose of Form 12B

1. Prevent incorrect TDS deduction: Without considering the previous employment income, the new employer deducts TDS only on the present salary component. This leads to incorrect TDS deductions and massive tax liability during ITR filing.  
2. Accurate total tax calculation: Form 12B ensures that the final tax liability is calculated accurately taking previous employment salary into consideration. 
3. Consolidated salary income: While filing ITR, salaries received from all the employers during the year are clubbed as income from salary and taxed, rather than taxing salary earned from each employer individually.
4. Accurate Form 16: Form 16 is the most important document for salaried taxpayers for filing ITR. Submitting Form 12B ensures that accurate Form 16 is generated by the employer. 

Details Required in Form 12B

1. Employee Information

• Full name of the employee
• Permanent Account Number (PAN)
• Residential address

2. Previous Employer Details

• Name and address of the previous organisation
• Tax Deduction Account Number of the previous employer
• Permanent Account Number of the previous employer
• Period of employment during the financial year

3. Salary Details

Detailed salary structure of the previous employment:

• Basic salary received
• Dearness Allowance (DA)
• House Rent Allowance (HRA)
• Leave Travel Allowance (LTA)
• Leave encashment received
• Any other allowances
• Perquisites and their value

4. Deductions and Tax Details

Information regarding deductions claimed, tax computation and TDS deducted by the previous employer.

• Deductions under Section 80C
• Deductions under Section 80D
• Deductions under Section 80E 
• Deductions under Section 24
• Provident Fund contributions, if applicable
• Professional tax paid
• Total TDS deducted by the previous employer

Form 12B Download (PDF)

Employers can download the Form 12B in PDF format from the Income Tax Portal through the following steps:

1. Go to the Income Tax Department’s official website.
2. Navigate to Tax Laws & Rules and click on Income Tax Forms under Forms/Download
3. Click on View All Income-tax Forms
4. Search for Form 12B and download the PDF

How to Fill Form 12B?

Form 12B cannot be generated and has to be filled manually by the taxpayer.

What Happens if You Do Not Submit Form 12B?

1. Incorrect TDS deduction: Not submitting Form 12B will lead to incorrect TDS deduction by the new employer. The new employer will only deduct TDS on the new salary and not on the combined salary for the year.
2. Higher tax liability at year-end: Incorrect TDS deduction will lead to a higher and massive tax liability while filing ITR for that year. 
3. Advance tax requirement: Taxpayers with tax liability exceeding Rs. 10,00 are required to pay advance tax. Incorrect TDS deduction will lead to advance tax liability and interests under Section 234C and 234B.
4. Tax mismatch notice: Chance of receiving notice from the income tax department for tax mismatch is also higher when Form 12B is not submitted.
5. Difficulty in ITR filing: A massive tax liability while filing ITR will lead to difficulty in filing ITR and payment of final tax liability. 

Difference Between Form 12B and Form 16

Difference Between Form 12B and Form 12BA

Example of Form 12B in Practice

Mr. Raj was working in ABC Ltd. till 31st July 2025. He joined PRS Ltd. from 1st August 2025 after quitting ABC Ltd. The following are the salary details available:

• ABC Ltd: Rs. 4,00,000 earned till 31st July 2025. No TDS deducted as his salary for the year was eligible for tax rebate.
• PRS Ltd: Salary earned Rs. 13,00,000.

Mr. Raj did not submit Form 12B to PRS Ltd., as a result TDS of Rs. 26,000 was deducted on only Rs. 13 lakh income. 

However, while filing ITR for FY 2025-26 his tax liability for the year was Rs. 1,30,000 on a combined Rs. 17 lakh income (Rs. 4,00,000 + Rs. 13,00,000). 

As TDS was deducted for Rs. 13 lakh only, Mr. Raj now owes Rs. 1,04,000 in taxes and additional interest under Section 234C and 234B as advance tax liability was also not paid, as a result of not submitting Form 12B.