October 18, 2024 - The Central Board of Direct Taxes (CBDT) has issued a new form called Form 12BAA. Employees will use this form to notify their employer of any tax deductions they have received from sources other than their salary. This includes, among other things, income from fixed deposits, insurance commissions, dividends from equity shares, and taxes deducted on the purchase of a car or foreign currency.

This initiative is in accordance with the announcement by Finance Minister Nirmala Sitharaman that TDS (Tax Deducted at Source) deductions from sources other than salary could be offset against the TDS and TCS (Tax Collected at Source) deducted from salary. This was said in the Union Budget for the financial year 2024-25.