Glossary of Human Resources Management and Employee Benefit Terms
Form 12B is a crucial document for employees in India, serving as a declaration form used for claiming tax deductions. Mandated by the Indian Income Tax Department, this form must be submitted by employees to their employers to claim tax benefits or rebates on investments and expenses.
Form 12B is applicable for various deductions under the Income Tax Act, such as those pertaining to house rent allowance (HRA), leave travel allowance (LTA), interest on home loans, and deductions under Chapter VI-A, which includes sections like 80C (investments in EPF, PPF, life insurance premiums, etc.), 80D (medical insurance), 80G (donations), among others.
Form 12B is an Indian income tax form used by employees who change jobs during a financial year. It's essentially a statement of income and tax deducted at source (TDS) from the previous employer. Here's a breakdown of key points about Form 12B:
Purpose:
Form 12B is used in India for a specific purpose when an employee changes jobs during a financial year (April 1st to March 31st). Here's a breakdown of why it's important:
Accurate tax withholding by the new employer:
Avoiding tax discrepancies:
There aren't any specific penalties mentioned in the Income Tax Act of India for directly submitting an incorrect Form 12B. However, there can be indirect consequences for both the employee and the employer depending on the nature of the mistake.
Here's a breakdown of the potential implications:
For the employee:
For the employer:
Importance of accuracy:
Recommendations:
Form 12B plays a critical role in calculating tax deductions for employees who switch jobs mid-year in India (between April 1st and March 31st) for two main reasons:
1. Provides continuity of tax withholding (TDS):
2. Ensures accurate tax liability:
These are short surveys that can be sent frequently to check what your employees think about an issue quickly. The survey comprises fewer questions (not more than 10) to get the information quickly. These can be administered at regular intervals (monthly/weekly/quarterly).
Having periodic, hour-long meetings for an informal chat with every team member is an excellent way to get a true sense of what’s happening with them. Since it is a safe and private conversation, it helps you get better details about an issue.
eNPS (employee Net Promoter score) is one of the simplest yet effective ways to assess your employee's opinion of your company. It includes one intriguing question that gauges loyalty. An example of eNPS questions include: How likely are you to recommend our company to others? Employees respond to the eNPS survey on a scale of 1-10, where 10 denotes they are ‘highly likely’ to recommend the company and 1 signifies they are ‘highly unlikely’ to recommend it.