Form 12B is an income tax form that must be presented according to Rule 26A’s criteria. Employees who shift from one company to another in the midst of a financial year must submit this form.
The major goal is to provide information about the employees’ past employers’ earnings. It assists new employers in deducting the correct amount of TDS from employees’ salaries for the rest of the fiscal year.
Any discrepancy in this form could result in increased tax liabilities for employees and make it harder for new employers to deduct the correct TDS. It is obligatory for all employees who change jobs in the midst of the fiscal year to submit it. When they change jobs, they must submit this paperwork to their new employers.
Self-employed professionals, on the other hand, are not needed to send this form to their new employers if they start full-time employment within the fiscal year. It only applies to salaried employees who are shifting from one firm to another. After the new employee completes Form 12b with all of the needed information, the new employer will issue a Consolidated Form 16 at the end of the year based on the information provided by the new employee in Form 12b.
Also, See: Form 12C
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