Help needed on Form 12B
This query is : Resolved
15 December 2009
Hi,
Can someone help me with filling-in Income Tax form 12B?
I need to know what is meant by "Employer's contribution to recognized provident fund in excess of 10% of the employee's salary [See Schedule IV - Part A]" (this is on column 14 of page 3of Form 12B found on Income Tax website). Link is http://law.incometaxindia.gov.in/DITTaxmann/IncomeTaxRules/pdf/itr62Form12B.pdf
Thanks,
Abhishek
Can someone help me with filling-in Income Tax form 12B?
I need to know what is meant by "Employer's contribution to recognized provident fund in excess of 10% of the employee's salary [See Schedule IV - Part A]" (this is on column 14 of page 3of Form 12B found on Income Tax website). Link is http://law.incometaxindia.gov.in/DITTaxmann/IncomeTaxRules/pdf/itr62Form12B.pdf
Thanks,
Abhishek
20 December 2009
If you providing email id i will send
20 December 2009
my email id is abhishekks2000@yahoo.com.
thanks.
thanks.
28 July 2024
**Form 12B** is used to provide details of income and tax deductions when an employee joins a new employer. It helps the new employer in computing the tax correctly and ensuring that the employee's income from the previous employment is taken into account while calculating the tax liability.
Here's a breakdown of how to fill in **Form 12B**, particularly focusing on the specific section you're asking about:
### **Understanding Column 14: Employer's Contribution to Recognized Provident Fund in Excess of 10% of the Employee's Salary**
#### **What It Means:**
- **Employer's Contribution to Recognized Provident Fund:** This is the amount contributed by the employer to the employee's provident fund account. This contribution is generally up to 12% of the employee's salary.
- **Excess of 10% of the Employee's Salary:** The portion of the employer's contribution that exceeds 10% of the employee's salary is relevant for tax purposes.
**Example to Illustrate:**
1. **Employee's Salary Details:**
- Basic Salary: ₹50K per month
- Annual Salary: ₹6L
2. **Employer's Contribution:**
- Assume the employer contributes 12% of the basic salary to the provident fund.
- Monthly Contribution: 12% of ₹50K = ₹6K
- Annual Contribution: ₹6K × 12 = ₹72K
3. **Excess Contribution:**
- 10% of the annual salary is ₹60K (10% of ₹6L).
- Employer's total annual contribution is ₹72K
- Excess Contribution = ₹72K - ₹60K = ₹12K
**How to Fill Column 14 in Form 12B:**
- **Column 14** should include the amount of the employer's contribution to the recognized provident fund that exceeds 10% of the employee's salary.
In this case:
- You would enter ₹12K in Column 14, as this is the excess contribution beyond 10% of the employee's salary.
### **Steps to Fill Form 12B:**
1. **Personal Details:**
- Enter the employee’s personal details and address.
- Provide PAN details and employment details.
2. **Income Details:**
- Fill in the details of salary, allowances, and other income.
3. **Tax Details:**
- Provide details of the tax deducted at source (TDS) by the previous employer.
4. **Details of Employer's Contribution to Provident Fund:**
- In **Column 14**, enter the amount of employer’s contribution to the recognized provident fund that exceeds 10% of the employee’s salary.
5. **Other Deductions:**
- Include other deductions such as professional tax, insurance premiums, etc., if applicable.
6. **Verification:**
- Ensure that all details are accurate and complete.
- Sign and date the form before submission.
### **Key Points to Remember:**
- **Employer's Contribution to Provident Fund:** Only the amount contributed by the employer that is above 10% of the salary needs to be reported in Column 14.
- **Taxable Income:** Contributions above the specified limit are taxable and need to be added to the employee's taxable income.
### **Conclusion:**
Form 12B is crucial for accurate tax calculation when changing jobs. Understanding the contributions to provident funds and their implications helps in avoiding discrepancies in tax computation. If you have any doubts or require further clarification, consulting with a tax professional or financial advisor is advisable.
Feel free to reach out if you need more assistance or further clarification!
Here's a breakdown of how to fill in **Form 12B**, particularly focusing on the specific section you're asking about:
### **Understanding Column 14: Employer's Contribution to Recognized Provident Fund in Excess of 10% of the Employee's Salary**
#### **What It Means:**
- **Employer's Contribution to Recognized Provident Fund:** This is the amount contributed by the employer to the employee's provident fund account. This contribution is generally up to 12% of the employee's salary.
- **Excess of 10% of the Employee's Salary:** The portion of the employer's contribution that exceeds 10% of the employee's salary is relevant for tax purposes.
**Example to Illustrate:**
1. **Employee's Salary Details:**
- Basic Salary: ₹50K per month
- Annual Salary: ₹6L
2. **Employer's Contribution:**
- Assume the employer contributes 12% of the basic salary to the provident fund.
- Monthly Contribution: 12% of ₹50K = ₹6K
- Annual Contribution: ₹6K × 12 = ₹72K
3. **Excess Contribution:**
- 10% of the annual salary is ₹60K (10% of ₹6L).
- Employer's total annual contribution is ₹72K
- Excess Contribution = ₹72K - ₹60K = ₹12K
**How to Fill Column 14 in Form 12B:**
- **Column 14** should include the amount of the employer's contribution to the recognized provident fund that exceeds 10% of the employee's salary.
In this case:
- You would enter ₹12K in Column 14, as this is the excess contribution beyond 10% of the employee's salary.
### **Steps to Fill Form 12B:**
1. **Personal Details:**
- Enter the employee’s personal details and address.
- Provide PAN details and employment details.
2. **Income Details:**
- Fill in the details of salary, allowances, and other income.
3. **Tax Details:**
- Provide details of the tax deducted at source (TDS) by the previous employer.
4. **Details of Employer's Contribution to Provident Fund:**
- In **Column 14**, enter the amount of employer’s contribution to the recognized provident fund that exceeds 10% of the employee’s salary.
5. **Other Deductions:**
- Include other deductions such as professional tax, insurance premiums, etc., if applicable.
6. **Verification:**
- Ensure that all details are accurate and complete.
- Sign and date the form before submission.
### **Key Points to Remember:**
- **Employer's Contribution to Provident Fund:** Only the amount contributed by the employer that is above 10% of the salary needs to be reported in Column 14.
- **Taxable Income:** Contributions above the specified limit are taxable and need to be added to the employee's taxable income.
### **Conclusion:**
Form 12B is crucial for accurate tax calculation when changing jobs. Understanding the contributions to provident funds and their implications helps in avoiding discrepancies in tax computation. If you have any doubts or require further clarification, consulting with a tax professional or financial advisor is advisable.
Feel free to reach out if you need more assistance or further clarification!
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