# Form 12BB (Statement of claims by an employee for deduction of tax)

> Form 12BB is the statement of rent, home loan interest and tax-saving investments an employee gives the employer, so TDS on salary is correct. From 01-04-2026 it is replaced by Form 124 under the Income-tax Rules, 2026.

In EaseDesk (coming soon, not available yet): Employee declarations and proofs for salary TDS are coming to EaseDesk with payroll, feeding each month's TDS calculation.

## Why it matters to your business

The employer works out TDS on salary, but only the employee knows their rent, investments and loans.
Form 12BB, now Form 124, is how that information reaches you in a form you can rely on. Collecting it
properly protects you: if you allow a claim without evidence and it is later disallowed, you can be
treated as having deducted too little tax.

## How it works

As of September 2026:

- **Which form:** Form 12BB for 2025-26 and earlier; Form 124 from tax year 2026-27, under the
  Income-tax Act, 2025.
- **What it covers:**
  - [HRA](/glossary/hra): rent paid, the landlord's name and address, their PAN if rent exceeds
    ₹1,00,000 a year, and the relationship with the landlord.
  - Leave travel: travel details and proof.
  - Home loan interest: the lender's name, address and PAN.
  - Tax-saving investments and other deductions: the type and amount, with proof.
- **What you do with it:** check the proofs, keep the form on record, and use the figures in
  [TDS on salary](/glossary/tds-salary). They also appear in the employee's salary certificate
  ([Form 16](/glossary/form-16), now Form 130).

## An example

An employee on the old regime in Pune pays rent of ₹15,000 a month, ₹1,80,000 a year, and invests
₹1,50,000 in tax-saving schemes. In April they declare both in Form 124, so the employer reduces
monthly TDS from the start of the year. In January they submit the rent receipts, the rent
agreement, the landlord's PAN (the rent is above ₹1,00,000) and the investment proofs, and the
employer settles the final TDS for the last three months.

## Common mistakes

- Accepting rent receipts without the landlord's PAN when rent is above ₹1,00,000 a year.
- Collecting proofs only in March, which leaves too little time to correct TDS.
- Asking for proofs from employees on the new regime, where most of them do not count.

## Questions

### Is Form 12BB (now Form 124) needed under the new tax regime?

Mostly not. The new regime allows few of the exemptions and deductions the form covers. It matters mainly for employees who choose the old regime and claim HRA, leave travel, home loan interest or tax-saving investments.

### When is the landlord's PAN required?

When the rent paid in the year is more than ₹1,00,000. Form 124 also asks the employee to state their relationship with the landlord.

### What if an employee does not submit it?

The employer deducts TDS without those claims, so more tax is deducted. The employee can still claim eligible deductions in their return and get a refund.

### When should employees submit the proofs?

Usually a declaration at the start of the year and proofs towards the end, by a date the employer sets, so the last months' TDS can be adjusted.

---

Source: https://www.easedesk.com/glossary/form-12bb · Updated 2026-09-28 · EaseDesk