Rule 204: Salary TDS particulars (Form 122) and perquisite statement
Rule 204 has two parts. First, an employee may give the employer details of other salary, house property loss, other income and tax already deducted or collected, in Form No. 122, so that the employer can take them into account for salary TDS. Second, the employer must give the employee a statement of perquisites and profits in lieu of salary: in the relevant columns of Form No. 130 where the salary for the tax year is not more than ₹150000, and in Form No. 123 where it is more.
Official notified Income-tax Rules, 2026Need advice on Rule 204?
This article is for general information. Read the official Rules and applicable Act amendments, including the Taxation and Other Laws (Amendment) Act, 2026. If you need professional advice for your situation, contact Bizeneed.
On this page
Bare law
Rule 204 - Furnishing of particulars for deduction of tax at source from income under head “Salaries”
(1) The assessee may furnish the following particulars in Form No. 122 to the person responsible for making the payment referred to in sub-section (1) of section 392, for the purpose of making deduction under the said sub-section:— (a) any income under the head "Salaries" due or received by the assessee, from any other employer or employers during the tax year; (b) any loss under the head "Income from house property" for the same tax year; (c) any income chargeable under any head of income other than "Salaries", not being a loss under any such head [other than the loss specified in clause (b)] for the same tax year; and (d) any tax deducted or collected at source under Chapter XIX-B of the Act for the same tax year.
(2) The person responsible for paying any income chargeable under the head "Salaries" shall furnish to the person to whom such payment is made, a statement giving correct and complete particulars of perquisites or profits in lieu of salary and the value thereof in— (a) the relevant columns provided in Form No. 130, if the amount of salary paid or payable to the employee for the tax year is not more than ₹ 150000; or (b) Form No. 123, if the amount of salary paid or payable to the employee for the tax year is more than ₹ 150000.
(3) "Salary" for the purposes of this rule shall have the same meaning as given in rule 15.
Rule breakdown
Employee particulars in Form No. 122 — Rule 204(1)
The assessee may furnish to the person responsible for paying salary under section 392(1): (a) salary income from any other employer during the tax year; (b) any loss under the head "Income from house property" for the same year; (c) income under any other head, not being a loss under such head other than the house property loss; and (d) tax deducted or collected at source under Chapter XIX-B for the same year.
Section 392(4)(a) of the Act requires the employer to take such particulars into account for salary TDS. It also lists relief under section 157 for specified employees, which Rule 204(1) as printed does not list separately. Section 392(4)(b) says salary TDS cannot be reduced except on account of house property loss and tax deducted or collected under other provisions of the Chapter.
Employer statement of perquisites — Rule 204(2)
The employer must give the employee a statement with correct and complete particulars of perquisites or profits in lieu of salary and their value.
If salary paid or payable for the tax year is not more than ₹150000, the statement is given in the relevant columns of Form No. 130. If it is more than ₹150000, it is given in Form No. 123.
This implements section 392(5)(a) of the Act.
Meaning of salary — Rule 204(3)
"Salary" in this rule has the same meaning as in Rule 15, the perquisite valuation rule.
Key takeaways
Form No. 122 is optional for the employee
The rule says the assessee "may" furnish the particulars.
₹150000 split
Form No. 130 columns up to ₹150000 salary; Form No. 123 above it.
Salary as in Rule 15
The meaning of salary is borrowed from Rule 15.
Practical checklist
- Give your employer details of salary from a previous employer in the same tax year in Form No. 122.
- Include tax already deducted or collected at source for the same tax year.
- Employers: issue the perquisite statement in the correct form based on the ₹150000 salary limit.
Avoid
- Do not report losses under heads other than house property in Form No. 122; Rule 204(1)(c) excludes them.
- Do not issue Form No. 123 where salary for the year is not more than ₹150000; the rule points to the Form No. 130 columns.
FAQs
Do I have to give Form No. 122 to my employer?
No. Rule 204(1) says the assessee "may" furnish the particulars. If you do, the employer takes them into account for salary TDS under section 392(4)(a).
Can I report a house property loss to reduce salary TDS?
Yes. A loss under the head "Income from house property" for the same tax year is one of the particulars in Rule 204(1)(b), and section 392(4)(b) allows salary TDS to be reduced on account of such loss.
Which form is used for the perquisite statement?
The relevant columns of Form No. 130 if salary for the tax year is not more than ₹150000, otherwise Form No. 123.
What does "salary" mean here?
The same as in Rule 15.
Glossary
- Form No. 122
- Form for an employee's particulars of other income, house property loss and TDS or TCS for salary TDS.
- Form No. 123
- Statement of perquisites where salary exceeds ₹150000.
- Perquisite
- A benefit valued under Rule 15 and treated as part of salary.