Form 12BA is a detailed statement which shows the particulars of perquisites, other fringe benefits and profits in lieu of salary. This is issued by the employer to the employee.
Perquisites and other benefits here means :
- Rent-free accommodation
- Interest-free or concessional loan
- Car allowance
- Club memberships
- Free meals
- Stock options
- Free education
- Use of movable assets by employees
- Gifts, vouchers etc
Form 12BA is a statement of particulars furnished by an employer to their employee with respect to the perquisites provided by the employer. It includes details like the value of perquisites, profits in lieu of salary, etc. Here's a basic overview of how to fill Form 12BA:
Part A - Details of the Employer
- Fill in the name and address of the employer.
- Provide the employer's Tax Deduction and Collection Account Number (TAN).
Part B - Details of the Employee
- Fill in the name and address of the employee.
- Mention the employee's PAN (Permanent Account Number).
Part C - Details of Salary Paid and any other Income Reported by the Employee
- Include salary paid, other allowances, perquisites, profit in lieu of salary, etc.
- Specify details of rent-free accommodation, motor car, any other movable asset, etc., provided to the employee.
Part D - Other Information
- Include any other relevant details as required.
Declaration
- Signed and dated by the employer.
Verification
- Employer signs and provides the designation and date.
The applicability of Form 12BA generally arises in situations where an employer provides benefits or perquisites to employees apart from their regular salary. These could include things like rent-free accommodation, stock options, car facilities, medical reimbursements, etc.
Employers are required to provide this form to employees to give them a comprehensive view of their income, including these perquisites and the tax deducted on them. Employees can use this information while filing their income tax returns to ensure accurate reporting of their income.
Employers issue Form 12BA along with Form 16 (a tax deducted at source certificate) and hence follow the due date applicable for issuance of Form 16, which is 15th June immediately following the end of the financial year.
Form 12BA is required to be issued when the salary amount is more than Rs. 1,50,000/-. Salary here means
Includes:
- Basic Pay
- Bonus
- Commission
- Allowances
- Any other monetary payment
Excludes :
- Dearness Allowance
- Exempt Allowances
- Employer contribution to PF
- Value of perquisites u/s 17(2)
- Payments that are not part of the perquisites
- Superannuation
- Voluntary retirement benefits
- Commutation of pension
- Lump-sum payment for cessation of service
The income from the salary head consists of three parts:
- Salary/wages/pension/gratuity,
- Perquisites and
- Profits in lieu of salary
Perquisites, commonly known as perks, are the benefits that an employee gets in addition to remuneration on account of his/her job or position. There are various types of perks given by the companies/employers: monetary like education expenses, driver salary, and medical expenses, and non-monetary benefits like rent-free accommodation, stock options, etc.
Income tax has set out rules for the calculation of the taxable value of each perk. According to such rules, the employer deducts tax on perks. Now, looking at the complicated taxation treatment of perks, income tax rules have mandated employers to give a separate form to employees to help them understand their tax deductions along with Form 16.
- Details of employer:
Name
Address
TAN
Assessing officer (TDS) jurisdiction
-
Details of employee:
Name
Designation
PAN/Aadhar
Whether the employee is a director or a person with substantial interest in the company
Income from salary other than perquisites
Financial year to which details pertain to
-
Prerequisite valuation in detail with respect to each kind of perquisite, which contains:
Value of perquisites
Amount recovered from the employee
Amount of perquisites chargeable to tax
- In addition, the total value of profit in lieu of salary also needs to be provided
-
Details of tax which contains:
Tax deducted
Tax paid by the employer on behalf of the employee.
Total tax paid
Date of payment into government treasury
- Declaration by an employer:
| Basis |
Form 12BA |
Form 12B |
| Time |
It is issued by the employer on or before 15th June immediately following the end of the financial year, to the employee. |
It is filled and submitted by the employee to the employer at the time of joining a new organization in the middle of the financial year. |
| Details |
A detailed statement of fringe benefits, perquisites, and profits in lieu of salary. |
Details related to salary and TDS deducted by the previous employer in form 12BA are provided. |
| Who issues the form? |
The employer issues the form to the employee. |
This form is submitted by the employee to the employer. |
| Basis |
Form 12BA |
Form 12BB |
| Time of issue |
Form 12BA is required to be issued by the employer on or before 15th June immediately following the end of the financial year to the employee. |
Form 12BB is required to be submitted at the beginning of the financial year. |
| Details |
It is a detailed statement that shows particulars of perquisites, other fringe benefits, and profits in lieu of salary. |
It contains details related to tax-deductible expenses and investments. |
| Who issues the form? |
This form is issued by the employer to the employee. |
This form is submitted by the employee to the employer. |
If you receive perquisites from your employer and are unsure about the tax implications on the fringe benefits you receive, our online CA services can help you understand the taxes involved while filing your income tax return. Our online CA consultation will guide you through the ITR filing process, ensuring you receive the maximum tax refund. Hire a CA for tax filing today and let our expert CA consultants assist you. Book an eCA now!
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