Last updated: 05 August 2026 · Written and reviewed by CA Meet Dhrangadhariya, CSM & Co LLP
Quick summary
- Form 124 is the statement an employee gives the employer to claim HRA, LTA, home loan interest and Chapter VIII deductions while TDS is calculated. It replaces Form 12BB from 01/04/2026.
- It has Part A (your details) and Part B (claims and evidence), and is filed once a year with the employer. It is not uploaded on the income tax portal.
- For HRA you give the landlord’s name, address, PAN, Aadhaar, relationship, if any, and the rent paid. Landlord PAN is a must if yearly rent exceeds ₹1,00,000.
- If you do not submit it, the employer deducts TDS without allowing any deduction or exemption.
How to submit Form 124 to your employer
Every year your employer deducts tax at source (TDS) from your salary. To deduct the right amount, the employer needs to know about your rent, travel, home loan and investments. You tell the employer through a statement. Until 31/03/2026 this was Form 12BB. From 01/04/2026 under the Income-tax Rules, 2026 it is Form 124.
Form 12BB and Form 124 side by side
| Old | New | |
|---|---|---|
| Form | Form 12BB | Form 124 |
| Rule | Rule 26C, Income-tax Rules, 1962 | Rule 205, Income-tax Rules, 2026 |
| Section | Section 192 of the 1961 Act | Section 392(5)(b) of the Income-tax Act, 2025 |
Who files it, and when?
An employee gives it to the current employer, once every financial year, as early as possible so the TDS is calculated correctly. It is only needed if you want your claims considered. If you do not submit it, the employer deducts TDS without allowing any deduction or exemption, and you can claim them later in your own return.
If you change jobs in the year, give the new employer your details of income and TDS from the old employer (Form 122), along with a fresh Form 124.
What does the form contain?
Part A: employee details. Name, address, PAN, email id, contact number and tax year.
Part B: claims and evidence.
- House rent allowance: name and address of the landlord, landlord’s PAN, Aadhaar, relationship with the landlord (if any) and the rent paid. Give a copy of the rent agreement.
- Leave travel concession or assistance: the travel details, with documents supporting the claim.
- Interest on borrowing: name and address of the lender, lender’s PAN where available and the interest paid or payable. Give a copy of the loan agreement.
- Deductions under Chapter VIII (A and B): the sections you claim, for example section 123 (the old section 80C), section 124 (NPS), section 129 (education loan interest), section 130, section 131 and section 153 (interest on deposits), with proofs.
- Other details as an annexure.
Then comes your declaration that the information is complete and correct.
Landlord PAN
The PAN of the landlord must be furnished if the rent in the year is more than ₹1,00,000. Aadhaar is not mandatory unless your employer asks for it.
Do I file it on the portal?
No. Form 124 goes to your employer, electronically or on paper. It is not uploaded separately on the income tax portal.
Before you fill it
- Check that HRA and LTA are part of your salary structure. If they are not, there is nothing to claim.
- Collect the rent agreement and rent receipts, travel tickets, the home loan interest certificate and the investment proofs.
- Remember that most of these claims work only in the old tax regime. Tell your employer which regime you choose.
Documents you may need
| Claim | Supporting document |
|---|---|
| House rent allowance | Rent agreement, rent receipts or bank proof, landlord’s PAN if rent is above ₹1,00,000 a year |
| Leave travel allowance | Tickets, boarding passes or invoices |
| Home loan interest | Loan agreement and the lender’s interest certificate |
| Section 123 items: PPF, ELSS, life insurance, tax-saver FD, NSC, tuition fees | Receipts, certificates, passbook |
| Health insurance premium (80D) | Premium receipts |
| Education loan interest | Lender’s certificate showing interest paid |
| Disability deductions | Medical authority’s certificate |
| Donations | Valid receipts in your name |
A few tips
- If you pay rent to your parents, make the payments by bank transfer and ask them to show it as income in their return.
- Do not submit false rent receipts. It can lead to action by the tax department.
- Declare only what you really expect to spend. If you do not invest later, your TDS may be short and you will pay more tax when you file.
- You can still claim missed deductions in your return, so do not worry if you could not give every proof to your employer.
Frequently asked questions
What is Form 124?
A statement showing particulars of claims by an employee for deduction of tax at source under section 392(5)(b) of the Income-tax Act, 2025, read with Rule 205 of the Income-tax Rules, 2026. It replaces Form 12BB.
Is Form 124 compulsory?
No. You file it only if you want the employer to consider your deductions and exemptions while computing TDS.
Do I upload Form 124 on the income tax portal?
No. You give it to your employer, in electronic or physical form.
Is landlord PAN compulsory?
Yes, if the yearly rent exceeds ₹1,00,000. Aadhaar is not compulsory unless the employer asks for it.
Do I need Form 124 for the standard deduction?
No. The standard deduction is allowed in every case.
Official sources
- Income Tax Department: Form No. 124
- Income-tax Rules, 2026 (Rule 205 and Form 124)
- Income Tax Department: e-Filing portal
Related reading
- What is House Rent Allowance (HRA): Exemption, Calculation and New Rules 2026
- Section 80C of Income Tax Act: 80C Deduction List, Limit and Examples
Disclaimer
This article is for general informational purposes only and should not be considered professional advice. Please consult a qualified expert for advice tailored to your specific situation. The author and website owner are not liable for any errors or actions based on this content.
