Form 124 Income Tax Rules 2026 Download Claim Tax Deduction by Employee from Employer
Form 124 Income Tax Rules 2026 Download Claim Deduction by Employee from Employer from 1st April 2026 onwards.
FORM NO. 124
[See rule 205]
Statement showing particulars of claims by an employee for deduction of tax under section 392(5)(b)
Form No. 124 is the newly introduced form under the income-tax act, 2025 and income tax rules, 2026, which effectively replaces the old form 12BB.
Here are the key points regarding Form 124:
1. Purpose and Utility It is a statement furnished by a salaried employee to their employer to provide details of claims for deductions, exemptions, and allowances (such as House Rent Allowance, Leave Travel Allowance, housing loan interest, and investments). This allows the employer to accurately compute the employee’s taxable salary and appropriately deduct Tax Deducted at Source (TDS).
2. Governing Provisions The form is governed by Section 392(5)(b) of the Income-tax Act, 2025, read with Rule 205 of the Income-tax Rules, 2026.
3. Is it Mandatory? No, it is not strictly mandatory. It only needs to be filed if the employee wants the employer to consider their tax-saving claims when estimating their taxable income and TDS liability.
- If you do not submit Form 124, the employer will deduct TDS on your salary without allowing the benefit of any deductions or exemptions.
- You do not need to file Form 124 to claim the standard deduction, as it is allowed automatically.
4. Structure of the Form The form is structured into specific sections:
- Part A: Captures the basic details of the employee, including Name, Address, PAN, Contact Details, and the relevant “Tax Year”.
- Part B: Contains the details of the specific tax benefits being claimed by the employee, alongside the supporting evidence provided.
- Declaration: A certification by the employee that the particulars are correct and complete.
5. Required Supporting Documents Employees must attach evidence to support their claims in Part B, such as:
- HRA: Copy of the rent agreement. Crucially, if the annual rent exceeds ₹1,00,000, providing the landlord’s PAN is mandatory (Aadhaar is not mandatory unless requested by the employer).
- Leave Travel Allowance (LTA): Documents supporting the LTC/LTA claim.
- Housing Loan Interest: Copy of the loan agreement.
- Other Deductions: Documents proving investments or expenditures (like children’s education fees or health insurance).
6. Submission Process The form must be submitted to the current employer once every financial year at the earliest possible time. It can be submitted either electronically or physically directly to the employer; it does not need to be separately uploaded onto the Income-tax portal.
7. Changing Jobs If an employee changes jobs during the year, they can submit Form 124 to their new employer. However, they should also provide their income and TDS details from the previous employer (using the newly designated Form No. 122) to ensure correct TDS calculations.
Download pdf Form 124 Income Tax Rules 2026 Claim Tax Deduction by Employee from Employer
Download pdf Form 124 Income Tax Rules 2026 click here
FAQS on Form 124 Income Tax Rules 26
1. What is Form No. 124 and its use?
Ans: Form No. 124 is a statement furnished by an employee to his employer for availing benefit of deductions, exemptions, allowances while computing taxable salary and TDS liability. Any salaried individual who wishes the employer to consider his claim of tax benefits related to House Rent Allowance (HRA), Leave Travel Allowance (LTA), deductions related to Investment or expenditure or deduction of interest on housing loan, must file this form along with supporting evidence.
2. What are the different parts of the Form No. 124?
Ans: Form No. 124 has two parts, viz. Part A and Part B.
Part A contains complete details of the employee.
Part B contains details of various Tax Benefits being sought by the employee along with specified annexures in support of such claims
3. Is it mandatory for the employee to file Form No. 124?
Ans: Form No. 124 is to be filed only if the employee wants his claim of deductions or exemptions etc to be considered by the employer while estimating his taxable income and computing TDS liability
| Nature of Tax Benefit | Supporting Document |
| House Rent Allowance | Copy of Rent Agreement |
| Leave Travel Allowance | Documents in support of LTC/LTA claim |
| Interest on Housing Loan | Copy of Loan Agreement |
| Deductions related to Investment or expenditure under Chapter VIII-A & B |
Documents in support of investment / expenditure |
5. Is the PAN of the landlord mandatory in Form No. 124?
Ans: Yes, the PAN of the landlord must be furnished if the annual rent exceeds ₹1,00,000. However, Aadhaar is not mandatory unless specifically requested by the employer.
6. Can Form No. 124 be filed online?
Ans: It may be submitted to the Employer either electronically or physically. It is not required to be uploaded separately on the Income-tax portal.
7. What happens if Form No. 124 is not submitted to the employer?
Ans: In case employee does not file any claim seeking tax benefits through Form No. 124, the employer will deduct TDS on salary income without allowing benefit of any deduction /exemption.
8. Is Form No. 124 required for the standard deduction?
Ans: No. The standard deduction is allowed in every case and does not require a separate declaration in Form No. 124 or any other Form.
9. Can Form No. 124 include declarations for family-related expenses?
Ans: Yes, it can include declarations for children’s education fees (as part of investment declarations) and medical reimbursements or health insurance benefits, if allowed by the organization.
10. Can Form No. 124 be submitted if an employee changes jobs during the year?
Ans: Yes. The employee should also provide income and TDS details from the previous employer (via Form No. 122) to the current employer for correct TDS calculation.
Guidance on Form 124 Income Tax Rules 26
Purpose:
Form No. 124 is used by an employee to furnish the details of different claims on account of deductions, exemptions, allowances and related evidence thereof to the employer so that correct amount of tax could be deducted at source after taking the claims into consideration accordingly. It is provided u/s 392(5)(b) of the Income-tax Act, 2025 read with Rule 205 of the Income-tax Rules, 2026.
Who Should File:
Employee to current Employer
Frequency & Due Dates:
This form is to be submitted at the earliest possible so that tax liability could be computed and tax could be deducted accordingly. The form is to be filed once every financial year.
Structure of Form No. 124:
1. Part A: Details of the Employee: Name, Address, PAN, Contact Details and Tax Year.
2. Part B: Details of Claims and Evidence thereof
House Rent Allowance
Leave travel concessions or assistance
Deduction of interest on borrowing
Deduction under Chapter VIII-A & B
Other details to be attached as annexure
3. Declaration by Employee: Certification that particulars are correct and complete.
Common Changes Made Across Forms:
1. Tax payer (employee) details such as Name, Designation, Address, PAN etc. have been standardized.
2. Assessment / Financial / Previous year or years have been replaced with Tax year or years, wherever appearing in the Form/Annexure.
3. Changes related to Sections, Clauses and Schedules have been aligned as per the Incometax Act, 2025.
4. Currency symbol “Rs.” has been replaced with “₹
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