Form 12BA
Form 12BA: Details of Perquisites Provided to Employees
In this post, we will discuss Form 12BA, what it is and why it is issued to employees. We will also look at what perquisites mean, when this form is applicable, who issues it, and how it is different from Form 12B.
Let us take a closer look at the following sections:
What is Form 12BA?
According to the Income Tax provisions, it is a detailed statement that lists the perquisites and amenities provided by an employer to an employee. These are benefits given in addition to the employee’s regular salary.
Examples include:
- Accommodation provided by the employer
- Free meals
- Free education for children
- Use of movable assets
- Vouchers and similar benefits.
Perquisites in Form 12BA
Perquisites are the extra benefits or facilities that an employer provides to an employee in return for the services they perform. These benefits are given in addition to the employee’s regular salary or compensation.
Some common examples of perquisites include travel expenses, cash allowances for holidays, medical expenses, credit card expenses, club membership expenses, free meals, non cash incentives, stock options, rent free accommodation and superannuation benefits.
As per the Income Tax rules, Form 12BA is a statement that shows the details of the perquisites or benefits provided by the employer to the employee. It is issued along with Form 16 and gives a clear breakdown of the different perquisites that the employee has received during the financial year.
Applicability of 12BA
This form is applicable to salaried individuals whose income is more than ₹1,50,000. It is issued along with Form 16. While Form 16 provides the complete details of income tax deducted and paid, this form mainly shows the details of perquisites provided by the employer.
The form contains details of what is included and what is not considered while reporting these benefits.
Included
- Basic pay
- Commissions
- Bonus
- Allowances
- Other monetary payments
Excluded
- Dearness allowance
- Lump sum payments
- Exempt allowances
- Value of perquisites
- Employer’s contribution to PF
- Voluntary retrenchment payments
- Leave encashment
- Pension computation
- Superannuation
As per income tax rules, this form shows the financial value of the perquisites provided by the employer and the amount that is taxable for the employee who receives these benefits.
Note:
Even if no perquisites are provided to an employee, the employer can mention that no perquisites were issued. The form still needs to be issued in such cases.
Form 12BA due date
An employer must give Form 12BA along with Form 16 to the employee on or before 15th June, after the financial year is completed. If possible, it should be issued immediately once the financial year ends.
Who shall issue this Form, and when?
Along with Form 16, the employer also issues Form 12BA. This form is given when the employee’s total annual payment is more than 1,50,000. The amount includes basic pay, bonus, commission, allowances, and any other payments made during the year.
Difference between Form 12BA and 12B
Difference between Form 12BA and 12BÂ are as follows :
|
Form 12BA |
Form 12B |
|
It is issued by the employer with detailed statements of perquisite to the employee. |
It is provided by the employer to the employee, while you switch a job or join a new organisation in the middle. Because, it is the proof that shows the details of earned income from the previous company and TDS deducted. |
|
The employer needs to provide a Form to the employee. |
The form is submitted by the employee to the employer. |
|
It comes under the circular Rule 26. |
It also comes under the circular Rule 26. |
Form 12BA format
To fill the form, you need to provide certain details under two sections. These details are listed below.
Section 1
- Name and address of the employer
- TAN number
- Income details
- Value of perquisites
- Designation
- Financial year
- TDS range of the employer
Section 2
- Details of each perquisite provided
- Profits in lieu of salary or compensation
- TDS details
- Value of chargeable perquisites
- Date on which the tax amount was paid to the government
- Details of the employee’s tax and deductions
- Total tax amount paid
- Taxes paid by the employer on behalf of the employee.
That is all for our discussion on Form 12BA. If you have any other questions or if you want to share your thoughts on this, please let us know in the comment box below.
FAQs
Q. Who issues Form 12BA?
Ans: Form 12BA is issued by the employer along with Form 16 at the end of every financial year. It contains details of the perquisites or benefits provided to the employee and the value of those benefits.
Q. Can an employee issue Form 12BA for himself or herself?
Ans: No. Form 12BA cannot be issued by the employee. It has to be issued by the employer. The form contains the details of perquisites provided to the employee and must be signed and certified by the employer.
Q. Should Form 12BA always be given to an employee?
Ans: False. Form 12BA is required only in certain cases. It must be issued if the employee’s salary is more than INR 1,50,000 per year. It should also be given if the employee receives any perquisites or certain allowances, even if the salary is below this amount.
