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Form 16 and Form 12BA are the most important documents for a salaried person. Form 12BA is an annexure to Form 16. It contains the details of the valuation of perks given to the employee, the amount recovered from the employee(if any), and the taxable value of the perquisite as per the format prescribed.
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 :
Form 12BA is a statement of particulars furnished by an employer to their employee in 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
Part B - Details of the Employee
Part C - Details of Salary Paid and any other Income Reported by the Employee
Part D - Other Information
Declaration
Verification
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 follows due date applicable for issuance of Form 16, i.e., 15th June immediately following the end of the financial year.
Form 12BA is required to be issued when the amount of salary is more than Rs. 1,50,000/-. Salary here means
Includes:
Excludes :
The income from the salary head consists of three parts:
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.
| Basis | Form 12BA | Form 12B |
|---|---|---|
| Time | It is issued by the employer on or before 15th June of 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 | Detailed statement of fringe benefits, perquisites, profits in lieu of salary. | Details related to salary, TDS deducted by the previous employer in form 12BA is provided. |
| Who issue 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. |
It is a detailed statement of perquisites, other fringe benefits & profit in lieu of salary issued by the employer to the employee.
It can be downloaded from given below link: https://www.incometaxindia.gov.in/forms/income-tax%20rules/103120000000007839.pdf
Yes, if the amount of salary exceeds Rs. 1,50,000/-
Yes, even if the value of perquisites and benefits is zero then Form 12BA is mandatory to issue provided amount of salary exceeds Rs. 1,50,000/-
Form 12BA is an annexure to Form 16. Form 12BA contains details of the value of perks, and Form 16 contains the detail of the entire salary breakup, tax deduction and deposition details with the government.
