Tax planning
Employee claims to employer, Form 124 (earlier Form 12BB)
What this means, checked by a CA
Form 124 tells your employer which exemptions and deductions to allow before it cuts tax from your salary. We check your rent, travel, loan and investment papers, fill the form and its annexures, and make sure your TDS matches what you will claim in your return.
₹999
Yearly, updated when claims change, + 18% GST
- Delivered in 1 working day after documents
- Due: No statutory date. Submit before the employer's proof cut-off (usually between January and March) so the last months' TDS is right; earlier is better.
How we do it: IDFD
Every case runs through the same four steps: Information, Discussion, Forms, Deliverables. You see each one ticked as it happens.
InformationWhat we need from you · 8 items
Rent agreement
Supports the HRA claim
Rent receipts or bank proof
Shows rent was actually paid
Landlord name, address, PAN
PAN needed if rent above ₹1,00,000
Relationship with landlord
Form 124 now asks for it
LTA tickets and travel proofOptional
Supports the LTA claim
Home loan agreement and interest certificateOptional
Supports housing loan interest
Investment and premium proofsOptional
Chapter VIII deductions claimed
Regime intimated to employer
Most claims work only in old regime
DiscussionWhat we discuss · 5 items
Old or new regime this year?
HRA and LTA need the old regime
Is the landlord a relative?
Must be disclosed; parent must show rent income
Which city do you live in?
Decides 50% or 40% HRA limit
Do you own a house in this city?
HRA with home loan raises questions
Which LTA journeys this year?
Only the allowed journeys in a block count
FormsForms we file · 5 items
Confirm regime with the employer for the year
Where: Employer payroll or HRMS portal. Due: Start of tax year, or when the employer asks
Work out the HRA exemption
Least of: HRA received; rent paid minus 10% of salary; 50% of salary (Delhi, Mumbai, Kolkata, Chennai, Ahmedabad, Bengaluru, Hyderabad, Pune) or 40% elsewhere. Salary means basic plus DA forming part of retirement benefits
Where: Our working sheet. Due: Before filling Form 124
Fill Form 124 Part A (employee details) and Part B (claims) with annexures for HRA, LTA, housing loan and deductions
Where: Employer's format or the official Form 124. Due: Before the employer's proof cut-off
Submit Form 124 and papers electronically or on paper to the employer
Where: Employer payroll or HRMS portal. Due: Before the proof cut-off
Check the next payslip and the year-end Form 130 show the claims
Where: Payslip and Form 130 Part B. Due: Next payroll; Form 130 by 15 June
DeliverablesWhat you get · 3 items
Completed Form 124 with annexures
When: Within 1 working day
HRA and deduction working
When: With the form
Checklist of papers to keep
When: With the form
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