Form 12B
When starting a new job, employees are required to provide Form 12B to their new employers. This form is used to declare the employee’s salary and details about their previous employment, which are used to figure out the employee’s tax liability. The structure is utilized to guarantee that employees are not burdened more than they ought to be, and following the worker’s business history for purposes, for example, opportune asset and gratuity is likewise utilized.
At the point when a employee joins another organization, they are expected to finish up Structure 12B inside the initial not many long stretches of joining. The employee’s name, address, PAN number, information about their previous employer, salary, tax deducted at source (TDS), and any other deductions from their previous salary are all included on the form. The structure is endorsed by both the worker and the business to affirm that the data gave is valid and exact.
The employer uses the information on Form 12B to figure out how much tax the employee must pay for the year. The data will be used by the employer to deduct the correct TDS amount from the employee’s pay. Workers should give exact data on the structure to stay away from any errors in the assessment estimation. Employers are required by law to keep a record of the form for a certain amount of time, typically seven years, and the record can be provided to the Income Tax Department for verification if necessary.