Salaried employees who want their employer to consider eligible deductions and exemptions while calculating salary TDS may need to submit Form No. 124. From Tax Year 2026–27 onwards, Form 124 for salaried employees replaces the earlier Form 12BB for this purpose.

What Is Form 124?

Form 124 is submitted by an employee directly to the employer to declare eligible tax claims and provide supporting information. It is not separately filed on the Income Tax portal.

The form may contain details relating to:

• House Rent Allowance (HRA)
• Leave Travel Allowance (LTA)
• Housing loan interest
• Eligible Chapter VIII deductions
• Supporting documents for the claims

What Changed From Form 12BB?

The basic purpose of the form remains similar, but the form number and governing provisions have changed. The Form 12BB to Form 124 change applies from Tax Year 2026–27. Form 124 is prescribed under Section 392(5)(b) of the Income-tax Act, 2025 read with Rule 205 of the Income-tax Rules, 2026.

The new form also includes updated terminology and certain additional disclosure requirements, including the relationship with the landlord, where applicable.

Is Form 124 Mandatory?

Form 124 is not compulsory for every salaried employee. It becomes relevant when an employee wants the employer to consider eligible deductions or exemptions while calculating TDS. The standard deduction does not require Form 124.

What Documents May Be Required?

Depending on the claim, employees may need to maintain supporting records such as rent receipts, rent agreements, travel documents, housing-loan interest certificates and investment proofs.

For HRA claims, landlord PAN is required where aggregate rent during the Tax Year exceeds ₹1 lakh. The disclosure of the relationship with the landlord is a separate requirement where the landlord is a relative.

What Happens When an Employee Changes Jobs?

Employees changing jobs during the year may submit Form 124 to the new employer for eligible deductions and exemptions they want considered. Previous-employer salary and TDS information can separately be provided through Form No. 122.

Conclusion

Form 124 continues the basic purpose earlier served by Form 12BB while reflecting the updated income-tax framework applicable from Tax Year 2026–27. Salaried employees should ensure that the deductions declared in the form are supported by appropriate records and are permitted under the tax regime applicable to them.