Form 122 Income Tax Rules 2026 pdf download and Key points
FORM NO. 122
[See rule 204(1)]
Form for furnishing details of income under section 392(4)(a) for the purposes of making deduction where
income is chargeable under the head “Salaries”
Under the new Income-tax Rules, 2026, Form No. 122 merges and replaces the old Forms 12B and 12BAA. It is governed by Section 392(4)(a) of the Income-tax Act, 2025, and Rule 204(1) of the Income-tax Rules, 2026.
Here are all the key points regarding Form No. 122:
1. Purpose of the Form Form 122 is a consolidated declaration submitted by a salaried employee to their current employer. It provides a mechanism for the employee to report:
- Salary income earned from any other employer(s) during the same Tax Year (along with the tax already deducted by them).
- Losses under the head “Income from House Property”.
- Any other non-salary income (not being a loss) and the respective Tax Deducted at Source (TDS) or Tax Collected at Source (TCS) on those transactions. By reporting these details, the current employer can accurately compute the total tax liability, offset taxes already paid, and avoid deducting excess tax from the employee’s salary, thereby reducing the need for the employee to claim refunds later.
2. Applicability (Who Should File)
- Who files: It is filed by a salaried employee who changes jobs during the financial year or has salary income from more than one employer. It is also used by an employee who wishes to claim a house property loss or report other income/TDS/TCS.
- Not for non-salaried persons: It is strictly meant for salaried employees.
- Is it mandatory? No, filing Form 122 is not mandatory by law, but it is highly beneficial for the employee to ensure correct tax deduction.
3. Frequency and Due Dates There is no specific statutory time limit for submitting this form to the employer. However, it is expected to be submitted at the earliest possible time, and no later than 31st March of the financial year, so the employer can accurately compute and deduct the final tax liability.
4. Mode of Filing
- Offline/Internal HR: Form 122 is submitted directly to the employer (either physically or through the employer’s internal HR/payroll system).
- No Portal Upload: It is not required to be uploaded on the Income-tax e-Filing portal, nor is it attached to the employee’s Income Tax Return (ITR).
5. Structure of the Form The form is divided into three main parts and an annexure:
- Part A (Particulars of the Employee): Captures basic details such as Name, Address, PAN, Residential Status, and the relevant Tax Year.
- Part B (Salary from other employers): Captures the details of the previous/other employer (Name, TAN/PAN) and the salary paid, including the value of perquisites, accretions to the provident fund, and the tax already deducted.
- Part C (Other Income, Loss, and TDS/TCS): Divided into four sub-parts:
- C(1): Details of loss from House Property.
- C(2): Details of any other chargeable income (excluding house property loss).
- C(3): Details of TDS deducted on the other income.
- C(4): Details of TCS collected.
- Annexure to Part B: Requires specific quantitative details regarding the value of perquisites (like rent-free accommodation, conveyance, free education, supply of gas/electricity/water) and provident fund accretions (like employer contributions exceeding 12% or interest credited exceeding government rates).
6. Key Updates in the 2026 Rules
- Merger: Previously, employees had to file Form 12B (for previous salary) and Form 12BAA (for other income/TDS). These have now been merged into a single Form 122 to significantly reduce the compliance burden on employees.