Form 12BA: Format & Applicability as Per Income Tax Act

What is Form 12BA?

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 :

• Accomodation facility
• Interest free or concessional loan
• Free meals
• Free education
• Use of movable assets by employees
• Gifts, vouchers etc

Who shall issue Form 12BA and by what date?

Employers issue Form 12 BA 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 of immediately following the end of the financial year.

When Form 12BA is required to be issued by the employer?

Form 12BA is required to be issued when the amount of salary 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)
  - Payment which are not part of perquisites
  - Superannuation
  - Voluntary retirement benefits
  - Commutation of pension
  - Lump-sum payment for cessation of service

What is the use of Form 12BA?

The income from salary head consists of three parts:

• - Salary/wages/pension/gratuity,
• - Perquisites and
• - Profits in lieu of salary

Perquisites, commonly known as perks, is the benefit 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 / employer monetary like education expenses, driver salary, medical expenses and non-monetary benefits like rent free accommodation, stock options etc.

Income tax has set out rules for 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 deduction alongwith Form 16.

What is the format of Form12 BA?

• 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

  

• Perquisite valuation in detail with respect to each kind of perquisite which contains :
  Value of perquisites
  Amount any recovered from employee
  Amount of perquisites chargeable to tax

  

• In addition total value of profit in lieu of salary also needs to be provided

• Details of tax which contains :
  Tax deducted
  Tax paid by employer on behalf of employee
  Total tax paid
  Date of payment into government treasury

  

• Declaration by employer :

  

What is the difference between Form 12BA and Form12 B?

What is the difference between Form 12BA and Form12 BB?