Form 124: Employee statement of claims for tax deduction under section 392(5)(b)
Source checked 21 October 2026 · Original author: Finin2min Editorial Desk
Purpose, person and period
Employee statement of claims for tax deduction under section 392(5)(b).
The employee gives Form 124 with actual claim evidence to the employer, distinguishing paid rent from HRA exemption and investment contributions from the final allowable deduction.
Period gate: This numbered form belongs to the Income-tax Rules, 2026, effective 1 April 2026. The predecessor 12BB is a concordance, not permission to change an earlier-year filing into a new-law form. For earlier periods, use the applicable 1961 Act form and saved procedure.
Controlling rule and source pages
Rule 205; Section 392(1), Section 392(5). Physical PDF pp 719-720; printed Gazette pp 2251-2252.
Rule 205 — connected rule text
205. Furnishing of evidence of claims by employee under section 392(5)(b) for deduction of tax from income under head ―Salaries‖.— (1) The assessee shall furnish to the person responsible for making payment under section 392(1), the evidence or the particul ars of the claims referred to in sub -rule (2) in Form No. 124, for the purpose of estimating his income or for computing the tax required to be deducted at source. (2) In respect of the claim specified in column B of the following Table, the assessee shall furnish the evidence or the particulars specified in column C thereof: Table Sl. No. Nature of claims Evidence or particulars A B C 1 House rent allowance. Name, address and Permanent Account Number of the landlord or landlords, where the aggregate rent paid during the tax year exceeds ₹ 100000 and relationship with the landlord, if any. 2 Leave travel concession or assistance. Evidence of expenditure. 3 Deduction of interest under the head "Income from house property". Name, address and Permanent Account Number of the lender. 4 Deduction under Chapter VIII. Evidence of investment or expenditure.
Completed field illustration
Fictional data, not for filing. The existing full fictional Form 124 model records rent and section 123 investment claims for payroll under an assumed valid old-regime choice.
| Form field / block | Completed fictional entry |
|---|---|
| Part A: employee / PAN / TY | Priya Arun Sharma / synthetic ZZZPS0000Z / 2026-27 |
| Part B: landlord / PAN / relationship | Rahul Dev Mehta / synthetic ZZZPM0000Z / unrelated, fictional Pune address |
| Rent paid / period | Rs 15,000 monthly × 12 = Rs 1,80,000, full TY |
| HRA working kept separate from rent field | Basic salary Rs 6,00,000; eligible DA nil; HRA Rs 2,40,000; Pune accommodation; exemption min(2,40,000,1,80,000-60,000,50%×6,00,000) = Rs 1,20,000 under current Rule 279 |
| Leave travel / borrowing interest | Nil / nil; supporting annexures A-2/A-3 not applicable |
| Section 123 entries | PPF Rs 50,000 + ELSS Rs 30,000 + employee EPF Rs 40,000 = Rs 1,20,000, assumed eligible |
| Other section claims / evidence | Nil / model A-1 rent agreement and A-4 investment evidence references |
| Declaration | 21 October 2026 / NOT SIGNED; no agreement, receipt or payroll regime election executed |
This illustrates the named fields, not every possible schedule. Use the complete official extract for additional applicable fields, annexures and verification. “Not signed” means no professional certification or authority action has occurred.
Reconcile the example
- 12×15,000 = 1,80,000; landlord PAN is needed because annual rent exceeds Rs 1 lakh.
- 50,000+30,000+40,000 = 1,20,000 investment claim.
- HRA exempt Rs 1,20,000 and taxable Rs 1,20,000 total the received Rs 2,40,000; annual rent is not itself the exemption.
Current Rule 279 includes Pune among the cities in the 50% salary limb. Earlier-period legacy Rule 2A city treatment must not be imported from this TY 2026-27 model. The form supports payroll evidence; statutory regime choice is a separate process.
Prepare, furnish and retain
- Use the form identity and period above, then determine the person who prepares, issues or verifies it from Rule 205. An authority-issued order is not an applicant filing.
- Collect the records that support the actual fields in the example; keep any mandatory schedules and annexures specified in the complete source form.
- Reconcile dates, amounts, units and identifiers to the underlying records. Preserve the applicable rule version and any later correcting notification.
- Where the rule prescribes electronic furnishing, use the current official utility/schema and authorised verification. A local PDF does not produce a portal acknowledgement.
- Retain the submitted version, supporting schedules and actual acknowledgement or issued certificate/order, as applicable. This fictional model supplies none of those evidential outcomes.
Download the correct documents
Official Form 124 source extract Filled sample — fictional field illustration
The official extract preserves source pages; later amendments are supplied with affected forms. Read the April corrigendum where its printed-page corrections apply. The filled field illustration is an educational model and cannot be filed.
Primary sources
Questions readers ask
Does this sample prove approval, filing or a professional conclusion?
No. It completes the named fields using synthetic facts. It has no real signature, DSC, approval or acknowledgement.
Can I use the legacy form number for a current tax-year obligation?
Establish the governing period first. A predecessor number is a cross-reference; earlier-year procedures and current-year forms must be kept distinct.