Form 12B should be submitted to your new employer before the end of the fiscal year if you switched jobs during the current fiscal year (April 1, 2022 to March 31, 2023). According to CA Ruchika Bhagat, MD of Neeraj Bhagat and Co., this will assist your new employer in calculating your total taxable income for the year and deducting the appropriate amount of tax accordingly.
Form 12B is a statement of an employee’s income from a previous employer for a given fiscal year. When an employee changes jobs in the middle of a fiscal year, it is typically required to be submitted to the new employer.
According to Yeeshu Sehgal, Head of Tax Market at AKM Global, who spoke with CNBC-TV18.com, “You can furnish the said form to your new employer along with details such as the address of the employer(s), TAN of the employer(s), Permanent Account Number or Aadhaar Number of the employer(s), period of employment, total amount of salaries, allowances such as house rent allowance, conveyance allowance etc., value of perquisites, section 80C deductions along
Submitting structure 12B before the finish of the monetary year can assist with keeping away from somewhat late taxation rate and guarantee that all customs are finished as soon a possible.
Experts in the field advise keeping up with tax-related paperwork at all times to avoid future problems like penalties.
Although new employers cannot compel you to submit form 12B, it is always recommended to do so to begin proper tax planning and lessen your tax burden.
By submitting form 12B before the end of the fiscal year, the new employer is able to deduct the correct amount of taxes and provide the taxpayer with the correct form 16.
The new employer will provide a consolidated form 16 at the end of the year based on the details provided by the new employee in form 12B once you have submitted form 12b with the correct information.
As we all know, form 16 is one of the most important documents that taxpayers need to file an ITR, and you must provide form 16 to all of your employees if they change jobs during any financial year. Having multiple Form 16s can make it difficult to determine the total taxable income and tax exemptions.