Form 124 (earlier Form 12BB): how to declare HRA, LTA, home loan and investments to your employer so less TDS is cut
Under the Income-tax Rules, 2026, Form 12BB is now Form No. 124 (rule 205, section 392(5)(b)). It is the statement you give your employer with proofs so that HRA, LTA, home-loan interest and investment deductions are counted before TDS is cut from salary. It is optional: if you don't submit it, the employer deducts TDS without these benefits. Attach the rent agreement (and landlord's PAN if rent is above ₹1 lakh a year), LTA papers, loan agreement and investment proofs. You give it to the employer, not on the income tax portal. In the new regime most of these claims don't apply.
Key facts Last verified: 25 Oct 2026
| Item | Details | Source |
|---|---|---|
| New name | Form No. 124 (earlier Form No. 12BB); rule 205 (earlier 26C); section 392(5)(b) (earlier 192) | Income Tax Dept — Form 124 FAQ |
| Purpose | Employee's claim for HRA, LTA, home-loan interest and deductions, so the employer computes TDS correctly | Income Tax Dept — Form 124 FAQ |
| Mandatory? | No; only if you want the employer to consider your claims | Income Tax Dept — Form 124 FAQ |
| Landlord PAN | Required if annual rent is more than ₹1,00,000 | Income Tax Dept — Form 124 FAQ |
| Where | Given to the employer on paper or electronically; not uploaded on the income tax portal | Income Tax Dept — Form 124 FAQ |
| Form list | All forms under the Income-tax Rules, 2026 with old numbers | Income Tax Dept |
Every December, Priya's HR team in Pune sends the same email: *"Submit Form 12BB and investment proofs by 15 January."* This year the email says Form 124. It is the same form with a new number under the new Income-tax Act. If she submits her rent agreement and PPF receipts, TDS for the last three months drops. If she doesn't, the employer cuts tax without her deductions, and she has to claim them back in her ITR.
Who needs Form 124
| You are... | Do you need it? |
|---|---|
| In the old tax regime and pay rent, have a home loan, LTA, or 80C/80D-type investments | Yes, submit it with proofs |
| In the new tax regime | Usually no: HRA, home-loan interest on a self-occupied house and most deductions are not available in the new regime |
| Only claiming the standard deduction | No: the standard deduction is allowed automatically, no form needed |
Not sure which regime is better for you? Compare with the income tax calculator. You must tell your employer your intended regime during the year; otherwise the new regime is assumed.
What to attach
| Claim | Proof to attach |
|---|---|
| House Rent Allowance (HRA) | Rent agreement; landlord's PAN if rent is more than ₹1 lakh a year |
| Leave Travel Allowance (LTA) | Travel tickets / documents for the LTC/LTA claim |
| Home-loan interest | Loan agreement / lender's interest certificate |
| Investments and expenses (deductions under Chapter VIII-A & B) | Receipts: PPF, ELSS, life insurance, tuition fees, health insurance, etc. |
Aadhaar of the landlord is not mandatory unless your employer specifically asks. Check how much HRA you can claim with the HRA calculator.
How Form 124 is structured
- Part A — your details: name, address, PAN, contact details and Tax Year.
- Part B — claims and evidence: HRA, LTA, interest on borrowing, and deductions, with annexures.
- Declaration: you certify the details are correct and complete, and sign.
- Hand it to HR / payroll on paper or through the company's portal. It is not uploaded on incometax.gov.in.
Changed jobs this year?
You can still submit Form 124 to your new employer. Also give them your previous employer's salary and TDS details in Form No. 122 (earlier Form 12B), so the new employer calculates TDS on your whole year's salary. Missing this is a common reason for a big tax demand at ITR time.
Missed the HR deadline? Nothing is lost. Choose the old regime in your ITR filed by the due date, claim the deductions there, and the extra TDS comes back as a refund. Your Form 130 (earlier Form 16) will show what the employer allowed.
Don't submit fake rent receipts or proofs. You sign a declaration that the details are correct, and wrong claims can lead to tax, interest and penalty later.
Frequently asked questions
What is the new number of Form 12BB?
Form No. 124 under the Income-tax Rules, 2026 (rule 205, section 392(5)(b) of the Income-tax Act, 2025). It replaced Form 12BB from Tax Year 2026-27.
Is Form 124 mandatory?
No. You file it only if you want your employer to consider your HRA, LTA, home-loan interest or deduction claims while calculating TDS.
Is landlord PAN mandatory in Form 124?
Yes, if the annual rent is more than ₹1,00,000. The landlord's Aadhaar is not mandatory unless your employer asks for it.
Do I upload Form 124 on the income tax portal?
No. You give it to your employer, either on paper or electronically.
Do I need Form 124 for the standard deduction?
No. The standard deduction is allowed in every case without any declaration.
Official links
Use only these government websites. HumainOne is not connected to any of them.
- Form 124 FAQ (Income Tax Dept)Purpose, proofs, landlord PAN
- Forms under Income-tax Rules, 2026Old vs new form numbers
- New vs old regime FAQsHRA and deductions in each regime
Disclaimer: HumainOne is an independent information website. We are not affiliated with UIDAI, the Income Tax Department, EPFO, NPCI, the Election Commission, the Government of Maharashtra or any government body. We do not accept applications, documents or fees. Information is checked against official sources on the date shown but rules change — always confirm on the official website before acting. Calculators give estimates, not official figures, and this is not tax or legal advice.