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Last updated on: July 29, 2025
Form 12B is a tax document in India used by salaried employees who join a new employer within the same financial year. As per Rule 26A of the Income Tax Rules, it enables the new employer to compute accurate tax deductions by capturing details of the employee’s previous salary, allowances, perquisites, and any tax already deducted (TDS) by the former employer. The employee must fill out and submit Form 12B to the new employer at the time of joining; it is not submitted to the Income Tax Department. Providing this form ensures proper tax calculation throughout the year, helps avoid tax discrepancies or double taxation, and facilitates the issuance of an accurate Form 16 at year-end. Employers use the information in Form 12B to consolidate income details for tax deduction purposes.
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Read BioForm 12B plays an important role in the Indian income tax scenario, particularly, in case of salaried individuals, who switch jobs within a financial year. Assuming that you are planning to change your job or that you have changed it, you may wish to know how to deal with Form 12B correctly so that you can later get out of tax problems. The article gives a detailed overview, clear procedure, and information to enable you to complete the filing and implementation of Form 12B effectively in the year 2025.
Job change in India may be an exciting change and new experience but it also introduces some paperwork in terms of taxation. Form 12B is one of the most significant ones in this process. This form allows new employers to correctly calculate your income tax deduction by considering your previous salary and the TDS (tax deducted at source) already done by your past company.
Form 12B is basically a statement of the information regarding your income, allowances and TDS of the previous employer which the employee hands over to the new employer. Lack of Form 12B may mean that your new employer may not compute your tax correctly and this may lead to either excess TDS deductions or tax defaults which may create troubles at the end of the year.
If you join a new company in the middle of a financial year (April to March), filling and submitting Form 12B is necessary. This will help your new employer to calculate your total annual income, take the right tax slab, and calculate the right TDS. Failure to file Form 12B will lead to either paying an excess amount in taxes or receiving a demand notice at the doorstep by the Income Tax Department.
In case you miss filling Form 12B, your new employer will just take into consideration the salary being paid by them and will not take into consideration the income or TDS paid by your previous employer. This can further result in either an excess TDS or a mismatch when filing your Income Tax Return.
More than 70 percent of salaried employees who switch jobs in metro cities forget to submit Form 12B, leading to last minute tax hassles.
[Source: ET Wealth Survey 2024]
Q: Is it possible to send Form 12B online to a new company?
A: In 2025, most of the big companies accept digital Form 12B submissions either through HR portals or through emails. This is because every time you have a new employer, you should always check his procedure.
It is not a complex process to fill out Form 12B, but accuracy is important in this case. The step by step procedure will assist you in making the correct completion, after the updates made by the Income Tax Department in 2025.
You must say something about the following:
The form 12B is made available as a soft copy by most of the companies and it is also available on the Income Tax India site. By 2025, you can find Form 12B formats by the most popular tax solutions providers in several online marketplaces where you can compare formats and download the one that fits your purposes.
Q: Will I be able to fill Form 12B on my mobile phone in 2025?
A: Yes, you can complete and sign Form 12B on your smart phone, particularly, when your employer operates in digital HR processes.
Example: Take the case of Priya who was working in XYZ Ltd between April and August 2024 with a salary of 50,000 INR and an HRA of 5,000 INR. She was hired at ABC Tech in September 2024. State investment documents that have been already filed such as LIC premium or PPF receipts
She signs and submits this filled Form 12B to the HR department of ABC Tech who will incorporate the details in their calculations of the payroll and will revise the TDS on the subsequent months.
Expert Insight: Most regulated firms in India accept digital signatures on Form 12B as part of the 2025 labor laws. Make sure that your information is the same as that one indicated in form 16 to prevent delay in processing.
| Characteristic | Specification 2025 |
|---|---|
| Documents | TDS, Salary in old job |
| Submission Deadline | One month of being a new employer |
| Reusability of format | Gov/Online Market places/HR Portals |
| Legal Requirement | As per Income Tax Act Section 192(2) |
Q: How long do I have to submit Form 12B after taking up a new job?
A: The prescribed deadline is less than a month after you join the new employer.
Some of the best HR and payroll SaaS solutions such as Zoho and RazorpayX will enable the smooth integration with Form 12B and auto-verification of the submission in 2025, eliminating the paperwork burden on new employees.
Q: What should I do in case I rejoin my old company in the same year? Do I have to submit form 12B?
A: Yes, in case there was a formal exit and rejoining with changes in salary structure or TDS, you are supposed to file Form 12B.
Professional Opinion: The majority of financial advisors in 2025 suggest that one should make a list of pay slips and TDS certificates when switching to a different company to fill out Form 12B in a fast and accurate manner.
You did not know that?
Letter of relief to evidence of period of service
Q: Can Form 12B be amended in case I discover an error in the future?
A: No, after submitting to your new employer, you are supposed to notify the HR at the earliest to make corrections but the employer payroll deadline may not allow changes.
These two forms have different and complementary roles in Indian tax system.
| Form 12B Feature | Form 16 |
|---|---|
| Online version | Yes |
| Who Prepares | Employee (self) |
| When used | When the new employer is joined in the middle of the year |
| Legal Requirement | Section 192(2), Income Tax Act |
| Contains TDS Details | Yes (from past employer TDS only) |
Q: Do I have to file Form 12B when both of the employers have provided me Form 16?
A: Yes, in the case of mid-year changes, Form 12B will assist your second employer to deduct TDS in the right manner. However, you need both Form 12B (for payroll) and Form 16 (for tax filing).
Expert Tip: You can download the latest form 12B templates and the form 16 format through online market places, but before submitting them, make sure it is authentic.
Absolutely. By 2025, Form 12B will be available in a variety of government-approved platforms and payroll processing sites in up-to-date formats that can be used immediately. These sites enable one to compare templates and fill the forms online and even follow submission reminders.
Q: Do you have to pay anything to download Form 12B online?
A: No, form 12B is a free of cost government form commonly available through employers and government portals. It is normally given away as a free download on online marketplaces after you sign up.
Most HR software vendors in 2025 are partnered with e-filing tax services so that Form 12B is auto-filled with correct data verified against your PAN and Aadhar.
Q: What should happen in case my new employer did something wrong after I filed Form 12B?
A: Contact the HR or payroll department as soon as possible most of the corrections can be done before the end of the FY but the sooner the better.
Expert Tip: Tax experts in 2025 advise that saving all salary slips and TDS certificates in digital locker to be able to cross-check faster during tax filing time.
Q: Is the Form 12B a wet signature document?
Form 12B was the first form that I overlooked when I changed jobs at the end of 2024. A few months after, another colleague indicated that my TDS calculation appeared to be elevated as compared to normal. I panicked a bit, and then contacted my HR team and submitted them a digital copy of Form 12B- which included my previous salary, allowances, and the TDS that I have already paid to my former employer.
It did not even take a whole day because of having HR software. In the following payslip, my TDS was corrected, and I did not have to pay too much tax. The main lesson: You should always have the old payslips and form 16 at hand and not delay tax compliance measures particularly when dealing with job switches.
Did you know that it is surprising?
A: By 2025, the majority of companies accept digital signatures, and in case of a traditional company, it might demand a print and signed copy.
To make onboarding easy, always check with your HR to ascertain the process and format of submissions.
A: Use final salary slips/TDS certificates as a proof and state the same to the new employer.
Form 12B is the self declaration form that is filled by Indian employees when changing jobs during the financial year. It helps the new employer to compute income and TDS correctly because it takes into account the information on incomes in previous employment. Be timely, cross-check information and keep them safely to prevent any tax complications in the future.
Q1: Does Form 12B apply to the employees of the private sector only?
A: No, Form 12B applies to all those who change their job during the financial year regardless of whether it is the private sector, the government sector, or PSU.
Q2: What do I do when I am not able to get salary information out of my former employer?
Q3: Are there any late fees or penalty of failure to file Form 12B?
A: No direct penalty exists in case of Form 12B delay, however, incorrect or incomplete deduction of TDS can attract demand notices during the time of filing your income tax return.
Q4: What does the online markets have to do with Form 12B and tax compliance?
A: The latest formats, expert consultation, and automated filling are available with simple clicks through online marketplaces in 2025, which saves time and prevents errors.
Q5: Is it possible to make changes to Form 12B later?
A: Once submitted, only an update can be done by notifying your HR and providing a corrected declaration, which is permitted in the process of your employer.
Q6: Do I have to file ITR manually in case I have filed Form 12B?
A: Yes, form 12B is only useful in calculating TDS. You have to submit your Income Tax Return on your own yearly.
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Written by Prem Anand, a content writer with over 10+ years of experience in the Banking, Financial Services, and Insurance sectors.
Prem Anand is a seasoned content writer with over 10+ years of experience in the Banking, Financial Services, and Insurance sectors. He has a strong command of industry-specific language and compliance regulations. He specializes in writing insightful blog posts, detailed articles, and content that educates and engages the Indian audience.
The content is prepared by thoroughly researching multiple trustworthy sources such as official websites, financial portals, customer reviews, policy documents and IRDAI guidelines. The goal is to bring accurate and reader-friendly insights.
This content is created to help readers make informed decisions. It aims to simplify complex insurance and finance topics so that you can understand your options clearly and take the right steps with confidence. Every article is written keeping transparency, clarity, and trust in mind.
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