CBDT notifies New Form 12BAA for Employees to Report Income beyond Salaries and House Property Losses

The Central Board of Direct Taxes (CBDT) has introduced Form 12BAA, effective from October 1, 2024, for employees to report income beyond salaries and house property losses. This form allows employees to inform their employers about other tax deductions and collections, such as those from fixed deposits, insurance commissions, and dividends. The form includes sections for detailing Tax Deducted at Source (TDS) and Tax Collected at Source (TCS), along with a section for reporting losses under the head “Income from house property.” The introduction of Form 12BAA aims to streamline the process of adjusting TDS and TCS against salary TDS, helping employees manage their cash flow better by reducing the tax deducted from their salaries. This move is part of the Income-tax (Eighth Amendment) Rules, 2024, and is expected to enhance compliance and accuracy in tax reporting for employees with multiple income sources.