Form No. 124: New Salary TDS Declaration Form Under the Income-tax Act, 2025

Form No. 124: New Salary TDS Declaration Form Under the Income-tax Act, 2025

Form No. 124 is the new salary TDS declaration form introduced under the Income-tax Act, 2025. It replaces the earlier Form 12BB used under the Income-tax Act, 1961. The form will be applicable from 1 April 2026 under the Income-tax Rules, 2026. Salaried employees can submit Form No. 124 to their employer to claim eligible deductions, exemptions, and allowances while calculating monthly salary TDS. This helps reduce excess tax deduction from salary during the financial year.

What is Form No. 124?

Form No. 124 is an employee declaration form used for submitting details of tax-saving investments, expenses, and exemptions to the employer. Based on the information provided, the employer can calculate a more accurate TDS deduction from salary. The form is commonly used for claims related to: • House Rent Allowance (HRA) • Leave Travel Allowance (LTA/LTC) • Home loan interest • Insurance premiums • Tuition fees • Other eligible deductions and exemptions Structure of Form No. 124 Form No. 124 contains two parts. Part A Part A includes employee details such as: • Name • PAN • Employment details • Financial year information Part B Part B contains details of deductions, exemptions, and allowances claimed by the employee along with supporting documents and annexures.

Is Form No. 124 Mandatory?

Form No. 124 is not mandatory for every employee. It is required only when an employee wants the employer to consider eligible deductions or exemptions while calculating salary TDS. If the form is not submitted, the employer may deduct TDS without considering tax-saving claims. Documents Required for Claims Employees should provide supporting documents for the claims made in Form No. 124. HRA Claims For HRA exemption, rent receipts or rent agreement may be required. If annual rent exceeds ₹1,00,000, the landlord’s PAN must be provided. LTA/LTC Claims Travel-related supporting documents are required for Leave Travel Allowance or Leave Travel Concession claims. Home Loan Interest Employees may need to provide a housing loan agreement or interest certificate for claiming home loan benefits. Investment Deductions Proof of eligible investments or expenditures should be submitted for applicable deductions.

Is Landlord Aadhaar Mandatory?

No, landlord Aadhaar is not mandatory under Form No. 124. However, some employers may request additional information for verification purposes. How Can Form No. 124 Be Submitted? Form No. 124 can be submitted either: • Physically • Electronically The form is submitted directly to the employer and does not need to be uploaded separately on the Income Tax portal.

Standard Deduction and Form No. 124

Employees do not need to submit Form No. 124 for claiming standard deduction. The standard deduction is automatically allowed while calculating salary income. Employees Changing Jobs During the Year If an employee changes jobs during the financial year, they can submit Form No. 124 to the new employer. They should also provide previous salary income and TDS details through Form No. 122 for proper TDS calculation.

Conclusion

Form No. 124 is an important salary TDS declaration form introduced under the Income-tax Act, 2025 and applicable from 1 April 2026. It helps salaried employees claim eligible exemptions, allowances, and deductions such as HRA, LTA, home loan interest, insurance premiums, and other tax-saving investments while calculating salary TDS. Proper submission of the form with valid supporting documents can help ensure accurate tax deduction and avoid excess TDS during the financial year.