Form 12BA

Form 12BA is an income-tax statement which depicts the particulars of prerequisites, employer-provided amenities, profits in lieu of salary and other fringe benefits. Form 12BA highlights the value of the payments and the taxable amount indebted to the Central Government by the beneficiary. This form is rendered to employees along with

Form 16. The present article provides a brief discussion on Form 12BA.

Perquisites

Perquisites, commonly referred to as perks, is a casual emolument or benefit accorded to an employee on account of the services rendered to an employer. These benefits, which are rendered in addition to the periodical remuneration, are classified into the following kinds:

Monetary Perks – benefits provided in cash, the likes of which include holiday expenses, travel expenses, and so on.
Non-monetary perks – benefits provided in kind, which includes rent-free accommodation/accommodation at concessional rent, employee stock options/restricted stock units, free meals, water, gift vouchers, car, and so on.

Applicability

Form 12BA is only issued to an employee if the annual salary is more than Rs. 1,50,000. If not, the particulars specified in ‘Part B’ of Form 16 is considered sufficient. The calculation of salary for the purpose of inclusion in Form 12BA includes the following components:

Basic pay
Allowances
Bonus
Commission
Any other monetary payment

The following components shall be excluded:

Dearness allowance
Employer’s contribution towards provident fund
Exempt allowances
Value of perquisites
Payments which are not a part of perquisites
Lump-sum payments provided during the cessation of service
Superannuation
Voluntary retirement benefits
Commutation of pension and the like

It may be noted that Form 12BA must be issued if the salary of an employee is more than Rs. 1,50,000; whether or not perquisites were provided in the particular year. In the case of the latter, the employer is required to mention the same in the form.

Deadline

Employers may furnish this form by June 15th of the financial year that immediately succeeds the particular year. The date is determined in accordance with the due date for Form 16, given that these two documents are to be furnished simultaneously.

Difference Between Form 12BA and Form 12B

The only aspect of similarity between these forms is that both of them are governed by the same Rule (Rule 26). Form 12BA is a statement of perquisites issued by an employer to an employee, whereas the statement in Form 12B is provided by an employee who moves to another employer in the middle of a financial year. The latter is issued to ensure that the employees joining a new organization under these circumstances has submitted the requisite details pertaining to TDS deductions of the previous salary. Form 12BA must include the particulars of income earned by the employee and the tax deducted at source on such income.

Structure of the Form

Form 12BA comprises of the following sections:

The First Section

The initial part of the form relates to the particulars of both the employer and the employee. The particulars related to the employer include:

Name and Address of the employer
TAN Number
TDS Assessment range of the employer

The details of the employee include:

Name of the employee
Particulars of designation
Details of income
The relevant financial year
The value of perquisites (if any)

Value of Perquisites

This section comprises of the details of particulars and its calculation. Further reference to its contents can be found on the below-furnished image:

Contents of Form 12BA

Details of Tax and Deduction

This 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 governmental accounts.

The form concludes with a declaration which must be signed by the employer.

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Frequently Asked Questions

Common questions about Form 12BA: Detailed Income.

Form 12BA is an income-tax statement issued by an employer to an employee. It provides details of perquisites, amenities, profits in lieu of salary, and other fringe benefits received by the employee. It also highlights the taxable amount payable to the government by the employee.

Form 12BA is issued to an employee if their annual salary exceeds Rs. 1,50,000. It is mandatory for the employer to provide this form, even if no perquisites were provided during the year.

Form 12BA covers two types of perquisites: monetary perks (such as holiday expenses, travel expenses) and non-monetary perks (such as rent-free accommodation, employee stock options, free meals, gift vouchers, car).

Employers must furnish Form 12BA by June 15th of the financial year immediately following the particular year. This deadline is in line with the due date for Form 16, as both forms are to be provided simultaneously.

While both forms are governed by the same rule (Rule 26), Form 12BA is a statement of perquisites issued by an employer to an employee, whereas Form 12B is provided by an employee who changes employers mid-year, to ensure continuity of TDS deductions.

Form 12BA comprises four main sections: (1) Employer and Employee details, (2) Value of Perquisites, (3) Details of Tax and Deduction, and (4) Declaration by the employer.

The calculation of salary for Form 12BA includes basic pay, allowances, bonus, commission, and any other monetary payment. However, components like dearness allowance, employer's PF contribution, exempt allowances, and lump-sum payments at cessation of service are excluded.

This section provides details of various perquisites, such as rent-free accommodation, reimbursements for utilities, driver's salary, and other benefits, along with their respective taxable values.

This section requires the employer to specify the tax deducted from the employee's salary, the tax remitted by the employer on behalf of the employee, the total tax paid, and the date of remittance into government accounts.

No, Form 12BA is not mandatory for all employees. It is only issued to employees whose annual salary exceeds Rs. 1,50,000.