Under the Income Tax Act, 2025, the rollout of Form No. 122 specifies a shift in how salaried individuals report multiple income sources and manage Tax Deducted at Source (TDS). Substituting earlier Forms 12B and 12BAA, this consolidated declaration has the motive to ease tax compliance, enhance precision in TDS deductions, and reduce refund claims.
What is Tax Declaration Form No. 122?
Form No. 122 is a consolidated declaration filed by an employee to his employer, reporting the following:
- Loss under the head House property income.
- Any other income (not being a loss) covered by other heads of income other than salary.
- Salary income earned from any other employer in the same Tax Year, including taxable allowances, perquisites, accretion to the employee’s provident fund account, and tax deducted by such other employer.
- Tax deducted/collected during the tax year.
Who Can E-File Form No. 122?
A salaried employee must file Form No 122 with his employer to report salary income from any other employer, or in case he desires to claim a loss under the head House property income or report tax deducted/collected at source from any other income.
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In other words, an employee holding salary income from more than one employer or having income from different sources and having been subjected to TDS/TCS on distinct transactions must submit this form. This is not intended for use by individuals who are not salaried.
Objective of E-Filing Tax Declaration Form 122
Filing of Form No 122 is useful for the following reasons:
- Simplify Tax Compliance: It facilitates the reporting process of non-salary income for both employees and employers. It furnishes the employee a formal way to claim credits for taxes paid elsewhere, by accurate reporting to his employer through Form No 122.
- Rarer Tax Refund Claims: By precisely accounting for all taxes paid at the source, the possibility of employees overpaying tax is reduced, and they need to claim a refund when filing their Income Tax Return (ITR).
- Decreased TDS: Employees can offset the tax already deducted or collected on other income against their salary TDS liability. Form No 122 (Earlier Form Nos. 12B & 12BAA)
Fundamentally, Form No 122 furnishes a procedure for employees to report income from exceeding one employer, claim loss from house property income, and to get credit for taxes already paid on non-salary income, which leads to avoidance of excess tax deduction.
Is It Compulsory to E-file the Tax Declaration Form No. 122?
Although not legally required, employees benefit from accurate tax deductions, preventing over-deduction and the need to file for refunds.
When Can File Form 122?
No stipulated time-limit is mentioned within which Form No 122 is to be filed with the employer.
Important Details to Know When Filing Form No. 122
The form is classified into three distinct parts, viz. Part A, B & C.
Part A needs information about the employee filing the declaration using Form 122.
In Part B, the employee should fill in particulars of the other employer and information on salary income made from such other employer in the tax year, along with taxable allowances, perquisites, accretion to the employee’s provident fund account, and tax deducted by such other employer.
Part C has four further subparts:
- Part C (1): Details of loss from House Property
- Part C (2): Details of any income chargeable to tax under any other head of Income besides salary, but does not include loss of any kind
- Part C (3): Tax deducted at source on any income chargeable to tax under any other head of Income besides salary
- Part-C (4): Tax collected at source
Can Tax Declaration Form 122 Be Filed Online?
It can be filed offline or via the employer’s HR/payroll system, if available. It does not need to be uploaded to the Income-tax portal.
Is It Necessary to Attach the Income Return to Form 122?
No. It does not need to be uploaded with the income return; however, it is crucial for precise reporting of income and taxes deducted/collected in the ITR.
Download Form 122 PDF
