What is Form 12BB? now Form 124
Form 12BB, now Form 124 from Tax Year 2026-27, is the employee's statement of HRA, LTA, home loan and other claims the employer uses to work out TDS.
Definition
Form 12BB is the statement an employee gives the employer listing the claims that reduce tax on salary: house rent, leave travel, interest on a home loan and deductions such as investments and insurance. Under the Income-tax Rules, 2026 it is Form 124, a statement of claims under section 392(5)(b) of the Income-tax Act, 2025.
How it works
- The employee declares expected claims at the start of the year so TDS is spread correctly.
- Before the last months of the year the employee gives proof; claims without proof are dropped and TDS is recomputed.
- Rent above the limit needs the landlord's PAN; a home loan claim needs the lender's details.
- Claims only reduce TDS under the regime the employee chooses; the new regime allows few of them.
Why HR and payroll teams care
Wrong or late declarations cause large TDS in February and March. Form 124 must be kept as evidence for the deductions shown in the quarterly statement.
Example
Rent of ₹25,000 a month
- Annual rent ₹3,00,000; a rent claim above the limit in the form needs the landlord's PAN
- HRA exemption is allowed only under the old regime
- Without proof by the cut-off, the HRA claim is removed and TDS rises
Form 12BB in NeevHR
See how NeevHR handles Form 12BB in payroll and HR
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