Form 12BB (now Form 124): the declaration that reduces your salary TDS
Employers deduct tax on salary based on what you tell them. Form 12BB was the standard way to declare rent, travel, home loan interest and tax-saving investments with proof. Under the Income-tax Rules, 2026, the same declaration is Form 124.
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Quick answer
Form 12BB, now Form 124 under the Income-tax Rules, 2026, is the declaration employees give their employer to claim HRA, LTA, home loan interest and deductions such as 80C for salary TDS. Landlord PAN is needed if rent exceeds ₹1 lakh a year. It matters mainly in the old regime.
- Form 12BB is now Form 124
- Landlord PAN above ₹1 lakh rent a year
- Missed proofs can still be claimed in the return
Official source: Income Tax Department: FAQs on forms under the Income-tax Rules, 2026
What you declare
| Item | What to give | Regime |
|---|---|---|
| House rent allowance | Rent paid, landlord’s name and address; landlord’s PAN if rent exceeds ₹1 lakh a year; rent receipts or agreement | Old only |
| Leave travel concession | Travel tickets or boarding passes for the journey; two journeys in a block of four calendar years (2026 to 2029 is the current block) | Old only |
| Interest on home loan | Lender’s name, address and PAN; interest certificate | Old only for self-occupied home |
| Section 80C and other deductions | Proof of PPF, ELSS, insurance premium, tuition fees, NPS, health insurance, education loan interest | Old only, except employer NPS |
In the new regime almost none of this reduces tax, so most employees there only confirm their regime. See the full list of deductions in our Section 80C guide.
The yearly cycle
- April: choose your regime and submit a provisional declaration of planned rent and investments.
- Monthly: the employer deducts TDS based on the declaration.
- December to February: submit Form 124 with actual proofs, by the deadline your payroll team sets (often in January).
- February and March: the employer recomputes the year’s tax and adjusts TDS in the last months. Missing proofs mean higher deductions in these months.
- By 15 June: you receive Form 130 (formerly Form 16); see our Form 16 guide.
HRA: the details that matter
- Exempt HRA is the least of: HRA received; rent paid minus 10% of salary; and 50% of salary in the eight metro cities from FY 2026-27 (Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, Ahmedabad) or 40% elsewhere. Work it out with our HRA calculator.
- Rent paid to parents is allowed if they actually own the house and declare the rent as their income. Rent to a spouse is routinely questioned.
- If the landlord has no PAN and rent exceeds ₹1 lakh, a declaration from the landlord to that effect is needed.
- Rent above ₹50,000 a month means you must also deduct 2% TDS from the rent; see our TDS on rent guide.
Missed the deadline?
Nothing is lost. If proofs reach payroll too late, your employer deducts more TDS and your Form 130 shows fewer deductions. You claim them in your return, provided you are in the old regime, and the excess TDS comes back as a refund. Keep the proofs; the tax department can ask for them, and large HRA or 80C claims that do not appear in Form 130 are a common trigger for questions.
Checklist before you submit
- Rent receipts for every month, or the rent agreement with bank transfers, matching the rent declared.
- Landlord PAN if annual rent is above ₹1 lakh; if the flat has two owners, both names and each one’s share.
- Home loan interest certificate for the financial year, showing interest and principal separately, and the pre-construction interest schedule if any.
- Premium receipts in your name, spouse’s or children’s, with policy numbers.
- ELSS and PPF statements showing investments made within the financial year.
- Tuition fee receipts showing the tuition component separately.
- Health insurance premium receipts, separately for parents if claimed.
- Travel tickets for LTA, in your name or your family’s, for the shortest route by the eligible mode.
Frequently asked questions
What is Form 12BB?
The declaration employees give employers to claim HRA, LTA, home loan interest and deductions for salary TDS. Under the Income-tax Rules, 2026 it is Form 124.
Is landlord PAN mandatory for HRA?
Yes, if rent paid exceeds ₹1 lakh a year. Without a PAN, a declaration from the landlord is needed.
Do I need to submit Form 12BB in the new regime?
Largely no, since HRA, LTA and most deductions are not available. You only need to confirm the regime and any employer NPS arrangement.
What if I miss the proof submission deadline?
Your employer deducts more TDS, and you claim the deductions in your return (old regime) to get a refund.
Proofs missed or regime unclear?
A FilingBase CA claims the right deductions in your return and recovers excess TDS, from ₹499.
Keep reading.
TDS on salary
How employers estimate annual tax, spread it over the months, and report it, under section 392 of the new Act.
Read guide→GuideSection 80C deduction list 2026
Every item that counts toward the ₹1.5 lakh limit, the current small-savings rates, and when claiming 80C still beats the new regime.
Read guide→GuideForm 16 Explained: Part A and Part B, How You Get It, What to Check Before Filing, and What to Do Without One
What Part A and Part B contain, why only your employer can download it, the 15 June deadline, the five checks before filing, and how to file without it.
Read guide→Official references
The statutory sources behind this page. We keep our guidance aligned to them — verify anything time-sensitive directly.
- Ministry of Corporate AffairsCompanies Act filings, forms and fee schedules
- Income Tax DepartmentReturns, forms, rates and e-filing utilities
- GST PortalRegistration, returns and rate notifications
Facts on this page are checked against these sources; the date of the last check is shown at the top of the page. It is general guidance, not advice on your specific facts. How we write and check our guides.