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Section 392 / Form 12BTDSwas Section 192(2) in IT Act 1961

Multiple Employers — Form 12B

If you change jobs during the year, you must submit Form 12B to your new employer disclosing salary and TDS from your previous employer, ensuring correct aggregate TDS.

Who this applies to

Employees who switch jobs during a financial year.

Key Points

  • Without Form 12B, each employer computes TDS independently on their portion — the aggregate TDS may be too low.
  • If the total tax at year-end exceeds TDS deducted, you must pay the shortfall as self-assessment tax + interest.
  • The new employer needs: salary paid by old employer, any perquisites, and TDS deducted — use your old Form 16 or salary slips.
  • Filing Form 12B is your legal obligation — concealing previous salary to reduce TDS is not permitted.

Worked Example

1

Job change mid-year and TDS shortfall

Scenario

Rajan leaves Company A after 6 months (April–September 2026) with salary ₹6L and TDS of ₹15,000. He joins Company B at a higher CTC. Company B pays ₹7L for October–March 2027. Rajan does NOT submit Form 12B.

Calculation

Company A (Apr–Sep): Salary ₹6L, computed tax on ₹12L annualised → deducted ₹15,000
Company B (Oct–Mar): Sees only ₹7L, annualises to ₹14L → deducts ₹42,000

Actual total salary: ₹6L + ₹7L = ₹13L
Actual tax on ₹13L: approx ₹1,19,600 (incl cess)
Total TDS deducted: ₹15,000 + ₹42,000 = ₹57,000
Shortfall: ₹1,19,600 – ₹57,000 = ₹62,600

+ Section 234B interest on shortfall

Result

Rajan owes ₹62,600 more in tax plus interest for not paying advance tax. If he had submitted Form 12B to Company B, they would have computed TDS on the combined ₹13L and deducted the correct amount throughout.

Related Sections

Section 392TDS on Salary
Section 424Interest for Default in Advance Tax
Section 15Salaries — Charging Section

Still have questions about Section 392 / Form 12B?

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Section references are based on the Income Tax Act 2025 (Tax Year 2026-27). Examples are illustrative — verify with a Chartered Accountant before filing.