When you change your job in the mid of the fiscal year you are required to fill out the Form 12B. When an individual joins a new job several formalities need to be completed, filling out Form 12 B is one of the crucial formalities one must complete while joining a new organisation. As per Rule 26A, you need to submit the income tax form if you are leaving your previous organisation and joining a new organisation. The Form 12A contains all the information of the earnings generated by an employee from his/her last organisation. It is the duty of the employee to submit Form 12B to the new employer. I hope you understand what is form 12b in income tax now.
Since I have discussed what is Form 12B, let us now understand what is the importance of Form 12B.
With the help of Form 12B, the new employer can access all the details of the new employee such as previous salary and deduction which helps the employers generate Form 16 with accurate details.
After the employee submits Form 12B the new employer deducts TDS from the salary which helps to avoid dispute.
It is mandatory to submit Form 12B. So, if you are changing your job you should always fill up Form 12B and submit it to your employee. Without this form, your employer will not be able to generate Form 16.
I hope you know what is form 12B in income tax now.
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What is form 12B?
Anjana
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2022-03-31T18:22:25+00:00 2022-03-31T18:22:27+00:00Comment
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