Form 12BA: Meaning, Format, Importance and Applicability

 form 12BA

Income Tax 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.

Applicability of Form 12BA

Form 12BA should only be submitted in cases where the employee’s salary exceeds Rs 1,50,000. The details of the perks that are already included in “Part B” of Form 16 itself would be sufficient if the salary did not exceed Rs 1,50,000. A separate statement in the form of “Form 12BA” is not necessary. Therefore, Form 12BA is merely an extra document that needs to be submitted especially for requirements. “Salary” in this context:

It Comprises of pay, allowances, bonus or commission or any monetary payment from one or more employers.

It excludes payments that are specifically excluded from being considered as perquisites; lump-sum payments received at the time of termination of service or superannuation or voluntary retirement, such as gratuity, severance pay, leave encashment, voluntary retrenchment benefits, commutation of pension and similar payments; employer’s contribution to provident fund; exempt allowances; value of perquisites.

To be issued even in absence of perquisites: Form 12BA must be issued even in the absence of perquisites. Employer may mention that no perquisites have been received by the employee in Form 12BA.

Read Also: Unlocking Tax Savings: Comprehensive Guide to Income Tax Deductions in India

How to fill the Form 12BA?

  • The first section of Form 12BA: The first part of the form gives details about the employer as well as the employee. The Employer Details require you to fill in the Name and Address of the Employer, as well as their TAN Number. Note that even an individual’s PAN number has a Assessing Officer Code in Form 16. But in the case of Form 12BA the Assessing Officer Code of the employer that is associated with the TAN number is specified, specifically detailing the area or jurisdiction to which the Employer belongs. The Employee Details includes Name and Designation of the Employee, PAN Number of employee and finally the financial year.
  • Value of Perquisites Section: All the details of the perquisites and their amount can be calculated here. There are however, three columns for each that include as per rules, amount recovered from the employee and amount of perquisites that are taxable.
  • Details of Tax Section: This entry is based on Form 16, and all the details should be already available in the Form 16 for the employee.
  • Declaration from the Employer SectionThis has to be filled up by the employer and all the details here are simply for the declaration for the person held responsible for the information provided in the form.

When is Form 12BA 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 basic, bonus, allowance, commission and other monetary payments. Employers issue Form 12BA along with Form 16 by 15th June of next financial year.

What is the use of Form 12BA?

The income from the salary head consists of three parts salary/wages/pension/gratuity, Perquisites and Profits in lieu of salary.

The benefits that an employee receives in addition to compensation because of their job or position are known as perks. Companies and employers offer a variety of benefits: financial ones such as medical, dental, and education costs; non-financial ones such as stock options, rent-free housing, and so on.

The rules governing the computation of each benefit’s taxable value are established by income tax. These regulations state that the employer withholds taxes from benefits. Due to the intricate taxation of benefits, income tax regulations now require employers to provide Form 16 to employees along with an additional form that explains their tax deductions.

Read Also: Form 10F for Non-Residents : Importance, documents and applicability

Format of Form 12BA

 Difference between Form 12BA and Form 12B

Form 12BA

Form 12BB

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.
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.
This form is issued by the employer to the employee. This form is submitted by the employee to the employer.
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