Form 12BA is a detailed statement detailing perquisites, other fringe benefits, and profits in lieu of salary. Employees are given this form along with Form 16. The following article provides a brief overview of Form 12BA.
Overview:
Form 12BA is an IT statement that outlines prerequisites, perks, profits in lieu of salary and other fringe benefits. The value of the aforementioned payments and the taxable amount due on those by the Assessee to the Central Government are contained.
According to the income tax laws, ‘salary’ consists of three components:
- Salary/wages/pension/gratuity (self-explanatory)
- Profits in lieu of salary
- Perquisites, often known as perks, are a type of reward given to an employee in exchange for services done to an employer. These advantages, which are provided in addition to the periodic remuneration, are classified as follows:
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- Monetary Perks – advantages given in cash, such as reimbursable holiday expenditures, travel expenses, and so on.
- Non-monetary advantages – rewards in kind such as rent-free housing/concessional housing, employee stock options/restricted stock units, free meals, water, gift cards, a car, and so on.
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| Form 12BA must be issued even if no prerequisite is provided to the employee. In Form12BA, the employer may state that the employee has not received any perquisites. |
Format of Form 12BA
Form 12BA is a statement showing particulars of perquisites, other fringe benefits or amenities and profits in lieu of salary with value thereof. It is issued by an employer to an employee on or before June 15th of the immediately following the end of the financial year.
Form12BA contains the following information:
- Name and address of the employer
- TAN of the employer
- TDS assessment range of the employer
- Name, designation, and PAN of the employee
- Is the employee a director or a person with substantial interest in the company?
- Income under the head “Salaries” of the employee (other than from perquisites)
- Financial year to which the details pertain to
- Valuation of perquisites in detail with respect to each kind of perquisites, perquisite value chargeable to tax
- Total tax deducted
Form 12BA: When is it Required?
Only when an employee’s salary exceeds ₹150,000 is Form 12BA required to be issued. In the case of a salary of less than ₹150,000, the details of perquisites already included in ‘Part B’ of Form 16 would suffice, and no separate statement in the form of ‘Form 12BA’ would be required. In fact, Form 12BA is merely an additional document that must be provided specifically for perquisites.
Form 12BA: Application and Computation
The computation of salary for the purpose of inclusion in Form 12BA consists of the following components:
- Basic pay
- Allowances
- Bonus
- Commission
- Any other monetary payment
However, the following forms of compensation are not to be included:
- Dearness allowance which does not enter computation of superannuation
- Retirement benefits
- Employer’s contribution to provident fund
- Exempt allowances
- Value of perquisites
- Payments specifically excluded from being considered as perquisites
- Lump-sum payments received at the time of termination of service
- Lump-sum payments received at the time of superannuation
- Lump-sum payments received at the time of voluntary retirement
- Gratuity
- Severance pay
- Leave encashment
- Voluntary retrenchment benefits
- Commutation of pension and similar payments
It ought to be emphasised that Form 12BA must be issued if an employee’s remuneration exceeds ₹ 1,50,000, regardless of whether or not perquisites were paid in the previous year. In the latter scenario, the employer must make a note of it on the form.
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How to Fill Form 12BA?
Form 12BA is a document provided by the employer to the employee that outlines the perquisites received during the financial year. Here’s a detailed guide on how to fill out Form 12BA:
- Part A: Details of the Employer
-
- Employer’s Name: Enter the full name of the employer
- Employer’s Address: Provide the complete address of the employer
- Tax Deduction and Collection Account Number (TAN): Include the employer’s TAN in this section.
- Part B: Details of the Employee
-
- Employee’s Name: Enter the full name of the employee
- Employee’s Address: Provide the complete address of the employee
- Permanent Account Number (PAN): Include the employee’s PAN.
- Part C: Details of Salary Paid and Other Income Reported by the Employee
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- Salary Paid: Document the total salary paid to the employee during the financial year
- Other Allowances: Include details of any other allowances provided to the employee
- Profit in Lieu of Salary: Report any profits received by the employee in place of salary
- Perquisites: Detail all perquisites provided to the employee
- Employee’s Contribution: Note the employee’s contributions related to the perquisites.
- Part D: Other Information
-
- Provide any additional relevant information that may not have been covered in the previous sections.
- Part E: Declaration and Verification
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- Employer’s Declaration: The employer must declare that the information provided is true and accurate
- Signature and Date: The employer must sign and date the form to complete the declaration and verification process.
Form 12BA: Filing Deadline
All employers must file this form with the IT department by June 15th of the financial year that immediately follows the income year. The filing due date for Form 12BA coincides with the due date for Form 16, hence these two forms are to be filled simultaneously.
Where Can I Find Form 12BA?
This form is available online as a PDF download, which must be printed and filled out manually. However, some websites offer the additional option of downloading an Excel sheet. This sheet can be filled out electronically using MS Excel and then printed. This method is more efficient for companies with a larger number of employees.
Form 12BA: What’s the Big Difference Between Form 12BA and Form 12B?
The only thing both forms have in common is that they are both governed by the same Rule i.e Rule 26. Form 12BA is a declaration of prerequisites delivered by an employer to an employee, whereas Form 12B is provided by an employee who changes jobs in the middle of a fiscal year. The latter is issued to guarantee that personnel entering a new organization under these circumstances have provided the necessary information regarding TDS deductions from their previous employer. Nonetheless, Form 12BA must include information about the employee’s earnings and the tax withheld at the source.
Learn more about How to Minimise TDS Amount on Salary?
Structure and Format
Form 12BA consists of the following sections:
The first section of the form demands information on both the employer and the employee. The necessary information related to the employer includes:
- Name of the employer
- Address of the employer
- TAN Number of the employer
- TDS assessment range of the employer
The particulars related to the employee include:
- Name
- Designation
- Income details
- Financial year
- Value of perquisites (if any)
The second section necessitates the re-speciation of data already mentioned in Form 16. The details to be furnished here are –
- Tax deducted from the employee’s salary
- Tax remitted by the employer on behalf of the employee
- Total tax paid
- Date of remittance into the governmental account
- A declaration which must be signed by the employer.
Who shall issue Form 12BA and when?
Form 12BA is issued by the employer to the employee on or before June 15th of the immediately following the end of the financial year. For example, if the financial year is April 1, 2023 to March 31, 2024, the employer must issue Form 12BA to the employee on or before June 15, 2024.
FAQs
Is Form 12BA and Form 16 the same?
No, Form 12BA and Form 16 are not the same. Form 16 is a certificate issued by the employer to the employee showing the details of the salary paid and the tax deducted at source (TDS) during the financial year. Form 12BA is a statement showing particulars of perquisites, other fringe benefits or amenities and profits in lieu of salary with value thereof.
Who will provide Form 12BA?
Form 12 BA is issued by the employer to the employee.
What is the difference between Form 12B and 12BA?
Form 12B is a statement of salary paid and TDS deducted from the previous employer. It is submitted by the employee to the new employer when they switch jobs during the financial year. Form 12BA is a statement of perquisites, other fringe benefits or amenities and profits in lieu of salary with value thereof. It is issued by the employer to the employee at the end of the financial year.
How to generate Form 12BA?
Form 12BA can be generated online on the website of the Income Tax Department of India.
Is Form 12BA mandatory?
Yes, Form 12 BA is mandatory for all employers to issue to their employees.
Is Form 12BA taxable?
The value of perquisites, other fringe benefits or amenities and profits in lieu of salary shown in Form 12 BA may be taxable.
Who receives Form 16A?
Form 16A is issued by the payer of interest, such as a bank or a post office, to the recipient of the interest.
Who files Form 16A?
Form 16A is filed by the payer of interest, such as a bank or a post office.
How do I claim deductions on U S 80GG?
To claim deductions on U S 80GG, you will need to submit Form 16 to your employer. Your employer will then deduct the amount of the house rent allowance from your salary and deposit it into your government account. You can then claim the deduction in your income tax return.
What is Form 12BB and 12BA?
Form 12BB is a certificate of deduction of tax at source on tax-free transport allowance. Form 12BA is a statement showing particulars of perquisites, other fringe benefits or amenities and profits in lieu of salary with value thereof.
What happens if I don't fill out Form 12B?
If you don't fill out Form 12B, your new employer may not be able to calculate your TDS correctly. This could result in you paying more tax than you owe at the end of the financial year.
The Takeaway
In order to file an income tax return, an employer will have to furnish Form 12BA to declare the amount of salary and other fringe benefits an employee is receiving. However, computing the same requires expertise and professional know-how, this is why we recommend that you get in touch with the experts at Vakilsearch to assist you in all your ITR filings: https://eportal.incometax.gov.in/iec/foservices/ needs and demands!
