Form No. 124 (earlier 12BB) is the statement under section 392(5)(b) and rule 205 in which an employee claims HRA, LTA, interest on housing loan and Chapter VIII investment or expenditure deductions for TDS, with proof. Part A has the employee's details; Part B the claims and annexures. The landlord's PAN is mandatory when annual rent exceeds ₹1,00,000. It is given to the employer on paper or electronically, not uploaded on the portal. No form is needed for the standard deduction. Without it, the employer deducts TDS without the claims.
What goes in Form No. 124
| Claim | Supporting document (Form 124 FAQ) |
|---|---|
| House rent allowance | Copy of rent agreement; landlord PAN if rent above ₹1,00,000 a year |
| Leave travel allowance | Documents in support of the LTC/LTA claim |
| Interest on housing loan | Copy of the loan agreement |
| Investment or expenditure deductions (Chapter VIII) | Proof of the investment or payment |
Employer steps through the year
- April: collect provisional declarations from old-regime employees and compute TDS on them.
- Mid-year: remind employees that proofs are due by your cut-off (many employers use January).
- January to February: verify proofs; disallow unsupported claims and revise TDS for the remaining months.
- March: final TDS true-up; keep Form No. 124 and proofs with the payroll records.
Worked example: HRA claim
Rohit in Pune (old regime) has basic + DA of ₹40,000 a month, HRA ₹20,000 and pays rent of ₹25,000 a month (₹3,00,000 a year, so landlord PAN is required). Exempt HRA is the least of actual HRA ₹2,40,000, rent less 10% of salary ₹2,52,000, and 50% of salary ₹2,40,000 (Pune is among the eight 50% cities from tax year 2026-27): ₹2,40,000. Check yours with the HRA calculator.
Edge cases
- New regime employees usually need no Form 124, because HRA and most Chapter VIII deductions are not allowed; the standard deduction needs no declaration.
- Job change mid-year: collect Form No. 122 with the previous employer's salary and TDS, so the year's tax is computed once.
- Aadhaar of landlord is not mandatory unless the employer asks.
FundRaksha HR lets employees fill the declaration and upload proofs in the app, and TDS updates on the next run.
Sources
Last reviewed: 2026-10-21. Information for Indian businesses; not legal advice.