Section 392(4) / Form No. 122 · was Section 192(2) in the 1961 Act
If you change jobs during the year, you must submit Form No. 122 to your new employer disclosing salary and TDS from your previous employer, ensuring correct aggregate TDS.
Who it applies to: Employees who switch jobs during a financial year.
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 No. 122.
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 No. 122 to Company B, they would have computed TDS on the combined ₹13L and deducted the correct amount throughout.
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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.