Form 12B is required to be furnished as per Rule 26A by a person joining any organisation in the middle of the year and is a form for furnishing the details of income earned from the previous employer. It is a form required to be submitted by the new employee to the employer and requires details like
- Details of your previous employer like his PAN No., TAN Number,
- Break up of Salary like Basic Salary + DA, Perquisites, House Rent Allowance, Leave Encashment, Leave Travel Allowance etc.
- Deduction and accreditation with respect to Provident Fund and details of Rent Free Accommodation (if any)
- Deductions if any under Section 80C, Section 80G, Section 80E, Section 80D, Section 24
- TDS on Salary deducted by the previous employer
- Professional Tax (if any) paid by the employee
These details in Form 12B are required to be furnished based on the Salary Slip and the Form 16 issued to you by your previous employer. Form 12B is required to be furnished even if no TDS was deducted by your previous employer because the salary was less than the basic exemption limit as per the Income Tax Slabs. It is quite possible that after combining your current and previous salary, your total salary is chargeable to tax. An extract of the specimen copy of Form 12B is enclosed herewith and the full copy can be viewed at http://law.incometaxindia.gov.in/DITTaxmann/IncomeTaxRules/pdf/itr62Form12B.pdf
Form 12B shall be verified and signed by the employee and based on these details furnished by the new employee, the employer issued a Consolidated Form 16 at the end of the year.
Although furnishing Form 12B & Form 16 is not mandatory as per the Income Tax Act, it is advisable for every employee to furnish these details to the new employer or else you would be required to self-compute your taxes and accordingly file your Income Tax Return.If these details are furnished to the new employer, it becomes the liability of the new employer to deduct TDS on total cumulative salary received from the previous employer and the new employer and deposit the same with the Govt., thereby reducing the liability of the employee to do this himself.