The Income Tax Department has introduced a single consolidated Form 122, replacing Form 12B and Form 12BAA, for salaried employees who have switched jobs during the year.
Form 122 allows employees to report income from more than one employer, claim loss from house property, and get credit for taxes already paid, ensuring the new employer deducts the correct amount of TDS.
The Income Tax Department has introduced a new form for salaried employees in the country. As an employee, you may be required to file Form 122 with your new employer if you have changed jobs during the year.
Typically, most organizations ask for a declaration from the employee regarding any other income for the year that may impact the tax deducted at source. When an employee switches jobs during the year, the new employer does not know the income received from the prior employer or the tax deducted at source in the previous organization.
Employees changing jobs from 2026-27 onwards will be required to submit income and tax details from previous jobs in a consolidated form to the current employer using Form 122.
While submission of Form 122 is not mandatory by law, skipping it could result in excess tax deduction at source, leaving the employee to file for a refund and wait for it to come through.
Form No 122 provides a mechanism for employees to report income from more than one employer, claim loss from house property income, and to get credit for taxes already paid on non-salary income, leading to avoidance of excess tax deduction. The form can be submitted offline or through the employer’s HR/payroll system, if available. However, it is not required to be uploaded on the Income-tax portal.
How it Helps Employees
Essentially, Form 12B & Form 12BAA have been merged into one consolidated Form 122, which will help the new employer to arrive at the tax liability of the employee and deduct the correct amount of tax at source. While not mandatory by law, it is beneficial to the employee as it ensures correct tax deduction, avoiding excess deduction and consequent filing of claim for refunds.
“Form 122 is issued under the new Income Tax Rules 2026, in lieu of erstwhile Form 12B and 12BAA. While not mandatory by law, it is beneficial to the employee as it ensures correct tax deduction, avoiding excess deduction and consequent filing of claim for refunds,” say Neeraj Agarwala, Senior Partner, Nangia & Co LLP.
Advantages of Filing
Employees can effectively reduce the TDS amount by offsetting the tax already deducted or collected on other income against their salary TDS liability with the new employer. Also, by accurately accounting for all taxes paid at the source, employees are less likely to overpay tax and need to claim a refund when filing their Income Tax Return (ITR) will not arise.
Overall, filing Form 122 streamlines the process of reporting non-salary income for both employees and employers. It provides the employee a formal way to claim credits for taxes paid elsewhere, by accurate reporting to their employer through Form No 122.
Disclaimer: This article is intended for general awareness only and should not be construed as tax, legal, or financial advice. The provisions relating to Form 122 under the Income Tax Rules 2026 are subject to further clarification and amendment by the Income Tax Department. TDS obligations, refund eligibility, and tax liability vary based on individual income, employment history, and applicable tax slabs. Salaried employees who have switched jobs are strongly advised to consult a qualified chartered accountant or tax advisor for personalised guidance before submitting or withholding Form 122.
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