Form 12B is a mandatory income tax document under Rule 26A of the Income Tax Rules, 1962, which employees must submit when joining a new employer during a financial year. This form provides details of an individual’s previous employer’s income, tax deductions, and TDS (Tax Deducted at Source), ensuring accurate tax computation by the new employer. It helps in avoiding double taxation and maintaining compliance with income tax regulations.

For companies managing contract workers, gig employees, and blue-collar workforce, collecting Form 12B ensures seamless payroll processing, accurate tax deductions, and compliance with statutory regulations. Organizations leverage HRMS platforms and payroll automation tools to streamline employee tax documentation, reduce errors, and facilitate smooth tax filings. A well-structured Form 12B submission process enhances financial transparency, regulatory adherence, and employee tax benefits.