Form 12B is required to be furnished as per Rule 26A by a person joining any organization 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 employee to the employer and requires details like
Details of your previous employer like his PAN No, TAN No.
Break up of salary like Basic + 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)
Deduction 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
The details in Form 12B are required to be furnished based on the salary slip and Form 16 issued by your previous employer. Form12B 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 Income Tax Slabs. It is quite possible after combining your current and previous salary, your total salary is chargeable to tax.
Form 12B shall be verified and signed by the employee and based on details furnished by the new employee, the employer issues a consolidated Form16 at the end of the year.
Although furnishing Form12B and Form16 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.
How to update Form 12B in the portal:
Admin level:
Navigate to: Control Panel->Payroll->Form 12B
A new page opens up where the list of employees who have submitted the Form 12B, and those who have not updated, are available in separate tables.
Click on ?Ç£**+Add new**?Ç¥, button on the top right side, and update the Form 12B, details for the employee, and click on Submit option.
Clicking on Save option will allow the employee to update/edit the details if required until the form is submitted.
Employee level:
Navigate to: Main panel -> Compensation -> Investment Declaration
Click on ?Ç£Form12B?Ç¥ option on the top right side of the page, this button visible only to those employees whose date of joining is in the mid of the financial year
Once click on the button, Form12B will be open, fill all the details and click on Submit button