Quick Summary
The Income-tax Department has introduced Form No. 124, replacing the earlier Form 12BB, under the provisions of the new Income-tax Act, 2025. The form plays an important role for salaried employees who want to claim tax deductions, exemptions, and allowances through their employer while calculating TDS on salary income. The newly released FAQ document explains the purpose, filing requirements, supporting documents and practical use of Form No. 124 for employees across India. What is Form No
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FAQ :
Form No. 124 is a declaration statement submitted by an employee to their employer to claim eligible tax benefits, deductions, exemptions, and allowances when calculating taxable salary and TDS.
No, filing Form No. 124 is not compulsory for every employee. However, it is required for employees who wish to claim deductions or exemptions through their employer's TDS calculations.
Employees can declare claims for House Rent Allowance (HRA), Leave Travel Allowance (LTA), interest on housing loan, investment-linked deductions, and other eligible exemptions and deductions.
Supporting documents vary by claim, but examples include a rent agreement for HRA, LTC/LTA documents for travel allowance, and a loan agreement for housing loan interest. The PAN of the landlord is required if annual rent exceeds Rs 1 lakh.
Yes, Form No. 124 can be submitted either physically or electronically to the employer. Separate uploading on the Income-tax portal is not currently required.
No, employees do not need to submit Form No. 124 to claim the standard deduction, as it is automatically applied when computing salary income.
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