Form 124 (Earlier Form 12BB): Tax Declaration and Document Guide

Published: 27 July 2026 | Last reviewed: 27 July 2026 | 10–12 min read
Written by: Paras Nagpal, Business Consultant, GetMyCA | Reviewed by: GetMyCA Tax Team

Sources reviewed: Income Tax Department Form No. 124, Form No. 124 FAQs, Income-tax Act, 2025 and Income-tax Rules, 2026

Quick Answer

Form No. 124 is the new version of Form 12BB for Tax Year 2026-27 onwards. Salaried employees submit it to their employer to declare eligible HRA, LTA, housing-loan interest, and Chapter VIII deductions for salary TDS calculation. It is prescribed under Section 392(5)(b) of the Income-tax Act, 2025, read with Rule 205 of the Income-tax Rules, 2026.

Form 124 at a Glance

What Is Form 124?

Form No. 124 is a statement furnished by a salaried employee to their employer, declaring eligible deductions, exemptions, and allowances — such as HRA, LTA, and housing loan interest — along with supporting evidence, so the employer can compute accurate salary TDS. The Income Tax Department describes it as "Form No. 124 (Earlier Form No. 12BB)."

Form 124 contains Part A for employee details and Part B for claims and supporting evidence.

What Changed From Form 12BB to Form 124?

The fundamental purpose is unchanged: an employee gives their employer eligible claims and evidence so salary TDS is computed correctly. Here's what's different:

• Form number: 12BB → 124
• Governing section: 192 → 392(5)(b)
• Governing rule: 26C → 205
• Terminology: "Assessment Year" is replaced with "Tax Year" for periods from 1 April 2026 onwards, matching the terminology introduced in the Income-tax Act, 2025. Older filings and proceedings may still reference Assessment Year.
• New field: "Relationship with the landlord, if any" — for HRA claims
• Deduction references: Chapter VI-A of the old Act broadly corresponds to Chapter VIII of the new Act. For example, the old Section 80C broadly corresponds to Section 123, read with Schedule XV. Form 124 also references other applicable Chapter VIII provisions where relevant, such as Section 124 (employer/individual NPS contributions) and specific housing-loan interest provisions under Sections 130 and 131.

Who Should Submit Form 124?

• Salaried employees who want their employer to factor in HRA, LTA, housing loan interest, or Chapter VIII deductions while computing monthly TDS
• Employees switching jobs mid-year who want the new employer to consider their eligible claims

Who Doesn't Need to Submit It?

• Self-employed individuals, freelancers, and business owners — Form 124 applies to salaried employees claiming benefits through an employer
• Employees who don't intend to claim any deductions through their employer

Is Form 124 Mandatory?

No. Form 124 is required only when an employee wants the employer to consider eligible claims while calculating taxable salary and TDS. If Form 124 is not submitted, the employer may calculate salary TDS without considering claims that require employee declaration and evidence. Eligible claims may still be examined later while filing your ITR, subject to applicable law and documentation. The standard deduction is applied automatically and doesn't need Form 124 at all.

Does Form 124 Work the Same Under Both Tax Regimes?

No. Form 124 does not select your tax regime — only deductions and exemptions permitted under the regime applied for payroll TDS purposes can actually reduce your taxable salary.

The new tax regime applies by default under Section 202 of the Income-tax Act, 2025, for Tax Year 2026-27 onwards, unless the permitted option is exercised. Under the default new regime, HRA, LTA, and most Chapter VIII deductions are unavailable, subject to specific exceptions provided in Section 202 (including provisions under Sections 124(1), 124(2), 125(2), and 146). For payroll TDS purposes, employees should communicate their regime preference through their employer's payroll process. For an individual without business or professional income, the statutory regime option is exercised through the income-tax return for the relevant Tax Year.

The treatment of let-out property, losses, and employer contributions can differ from a simple self-occupied-house case. Review the applicable provision before making a claim.

What Claims Does Form 124 Cover?

House Rent Allowance (HRA)

• Annual and monthly rent paid
• Landlord's name and address
• Landlord PAN and relationship, if any (see below)

Leave Travel Allowance (LTA)

• Travel details for domestic travel undertaken within India
• Available for two journeys in a block of four calendar years
• Covers actual travel fares only — not hotel stays, local transport, or food

Housing Loan Interest

• General interest on borrowing under the head "Income from house property" — name, address, and PAN of the lender, and interest paid/payable
• Separately, Form 124 also references specific Chapter VIII deductions under Sections 130 and 131 — narrow, time-bound additional deductions (for loans sanctioned 1 April 2016-31 March 2017 under Section 130, or 1 April 2019-31 March 2022 under Section 131, each with its own loan-amount and property-value conditions). Most loans taken outside these windows won't qualify under either section, but may still be claimable under the general house-property interest provision.

Chapter VIII Deductions

• Section 123 (broadly corresponding to old Section 80C): life insurance, PPF, ELSS, NSC, tuition fees, home loan principal — combined limit ₹1.5 lakh
• Other applicable Chapter VIII provisions: health insurance, education loan interest, donations, and similar items, each with their own conditions

Is Landlord PAN the Same as the Relationship Disclosure?

No — these are two separate requirements:

Required information in Form 124:

• Landlord PAN, where aggregate Tax Year rent exceeds ₹1 lakh
• Relationship with the landlord, if any — this is a separate field, not linked to the ₹1 lakh threshold, and applies whenever the landlord is a relative, regardless of rent amount

Additional proof your employer may request:

• PAN card copy
• Rent receipts
• Bank-payment evidence
• Interest certificate
• Premium or investment statements

Landlord Aadhaar is generally not mandatory unless the employer specifically asks for it.

How Do You Fill Form 124?

1. Fill Part A with your full name, address, PAN, email address, contact number, and the relevant Tax Year
2. Confirm your tax regime choice before filling any deduction claims — under the new (default) regime, most Chapter VIII/HRA/LTA claims won't reduce your TDS
3. Declare HRA details, including landlord PAN (if applicable) and relationship disclosure
4. Declare LTA claims for eligible domestic travel
5. Declare housing loan interest, specifying whether it falls under the general house-property interest provision or a specific Chapter VIII section (130/131)
6. Declare Chapter VIII investments with supporting proof
7. Attach the required annexures
8. Sign the declaration confirming the details are correct to the best of your knowledge
9. Submit to your employer — electronically or physically

What Documents Should You Keep With Form 124?

• HRA: rent agreement and supporting rent records
• LTA: eligible travel tickets or supporting travel documents
• Housing-loan interest: loan agreement and lender certificate/details
• Chapter VIII claims: investment or expenditure evidence
• Landlord PAN details where aggregate Tax Year rent exceeds ₹1 lakh

When and How Do You Submit Form 124?

• Form 124 is submitted directly to your current employer — not uploaded separately to the Income Tax portal
• It can be submitted electronically or physically, depending on your employer's process
• It is described as a once-per-financial-year submission — there is no single date applicable to every employer. Submit at the earliest possible stage, within your employer's own payroll or investment-proof deadline
• Not required if you're only claiming the standard deduction

Form 124 vs Form 122 — What's the Difference?

What Happens to Form 124 When You Change Jobs?

If you change jobs during the Tax Year, submit Form 124 to your current employer for eligible deduction and exemption claims you want considered going forward. Also provide Form No. 122 to report your previous employer's salary and TDS details — this isn't mandatory by law, but it helps your current employer calculate TDS using your complete income for the year rather than an incomplete picture.

Worked HRA Example

Scenario (illustrative): Priya, a salaried employee in Bengaluru under the old tax regime, pays ₹18,000/month rent (₹2,16,000/year) to a landlord who is not a relative. Her basic salary is ₹6,00,000/year, and her HRA component is ₹2,50,000/year. For this illustration, assume Priya has no qualifying dearness allowance or turnover-based commission forming part of salary for HRA calculation.

Since Bengaluru is now one of the eight cities eligible for the 50% HRA exemption rate (alongside Delhi, Mumbai, Kolkata, Chennai, Hyderabad, Pune, and Ahmedabad, from Tax Year 2026-27), her exemption is the lowest of:

Accordingly, ₹94,000 of the ₹2,50,000 HRA received (₹2,50,000 - ₹1,56,000) would remain taxable in this simplified illustration.

Since her annual rent exceeds ₹1 lakh, she must provide her landlord's PAN. If the landlord were her father instead, she would additionally need to disclose that relationship in Form 124.

Common Mistakes

• Assuming Form 124 works the same regardless of tax regime — most claims only reduce TDS under the old regime
• Conflating the ₹1 lakh PAN threshold with the relationship disclosure requirement — they're separate conditions
• Assuming general housing loan interest and Sections 130/131 are the same thing — the latter are narrow, time-bound provisions most current loans won't qualify for
• Skipping Form 122 after a job change, which can leave the current employer with an incomplete picture of your year's income and TDS
• Assuming submission is mandatory — it isn't, but skipping it usually means claims aren't factored into monthly TDS

Key Takeaways

• Form 12BB has been replaced by Form No. 124 for Tax Year 2026-27 onwards, under Section 392(5)(b) of the Income-tax Act, 2025, and Rule 205 of the Income-tax Rules, 2026.
• The form's core purpose is unchanged — only terminology, structure, and a few disclosures have been updated.
• Landlord PAN (above ₹1 lakh rent) and relationship disclosure (whenever landlord is a relative) are separate, independent requirements.
• Filling Form 124 does not guarantee your claims reduce TDS — that depends on whether you're under the old tax regime.
• When changing jobs, provide Form No. 122 to report your previous employer's salary and TDS details, in addition to filing Form 124 for your ongoing claims.

Frequently Asked Questions

Is Form 124 mandatory for every salaried employee?

No. It's only needed if you want your employer to consider eligible deductions and exemptions while computing TDS. Skipping it usually means those claims aren't factored into your monthly TDS, though you can still claim them later while filing your ITR.

Is Form 124 available under the new tax regime?

Form 124 does not select your tax regime. Only deductions and exemptions permitted under the regime applied for payroll TDS can reduce your taxable salary. Under the default new regime, HRA, LTA, and most Chapter VIII deductions are unavailable, subject to the specific exceptions under Section 202.

Is landlord PAN mandatory?

Yes, if aggregate annual rent exceeds ₹1 lakh in the Tax Year. Landlord Aadhaar is generally not required unless the employer specifically asks for it.

Is landlord relationship disclosure only required above ₹1 lakh rent?

No — this is a separate requirement, applicable whenever the landlord is a relative, regardless of the rent amount.

Is Form 124 uploaded on the Income Tax portal?

No. It's submitted directly to your employer, electronically or physically.

Is Form 124 required for the standard deduction?

No. The standard deduction is applied automatically.

What happens if Form 124 is not submitted?

Your employer will deduct TDS without considering claims that require your declaration and evidence. You can still claim eligible deductions later while filing your ITR — see our guide on the ITR filing last date for 2026 for the relevant deadlines.

What should I submit if I change jobs mid-year?

Submit Form 124 to your new employer for the claims you want considered going forward. Also provide Form No. 122 with your previous employer's salary and TDS details, so your current employer can calculate TDS using your complete income information for the year.

Get Your Salary Tax Documents Reviewed Before ITR Filing

Form 124 is submitted to your employer, but your declared claims should stay consistent with Form 16, AIS, Form 26AS, and your final income-tax return. GetMyCA can help review your salary documents, eligible deductions, available tax credits, and applicable ITR form to reduce avoidable errors and inconsistencies before filing.

Start Your Income Tax Return Filing → getmyca.com/income-tax-return

Talk to a GetMyCA Tax Professional → +91 92174 87001

Related Reading

• Income Tax Return Filing Services → getmyca.com/income-tax-return
• New Income Tax Act 2025: Key Changes from April 2026 → getmyca.com/blog/new-income-tax-act-2025
• ITR Filing Last Date 2026: Deadlines & Penalty → getmyca.com/blog/itr-filing-last-date-2026
• Revised Return Filing → getmyca.com/revised-return

Official Sources

• Form No. 124 — official notified rules PDF
• Form No. 124 FAQs
• Form No. 122 FAQs
• Income-tax Act, 2025 — Section 202
• Income-tax Rules, 2026 — notified rules update

About the Author

Paras Nagpal
Business Consultant, GetMyCA
Email: paras@getmyca.com | Phone: +91 92174 87001

Disclaimer

This article is for general informational purposes and does not constitute legal or tax advice. Tax regime eligibility, deduction limits, and compliance requirements are subject to change via government notification. Always verify applicability for your specific situation with a qualified tax practitioner before filing.

About GetMyCA

GetMyCA Consultants Private Limited is a trusted business consultant based in New Delhi, serving clients across India since 2015. GetMyCA is helping entrepreneurs with hasslefree GST refund claims since 2018. Our team of qualified Chartered Accountants has successfully recovered stuck credits for businesses across pharma, footwear, corrugated box manufacturing, and ecommerce sectors.

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