Form 12BA

Form 12BA is a statement that details regarding the perquisites and other fringe benefits along with profits in lieu of an employee’s salary. Perquisites, or perks as they are called, are granted to employees for their service.

What does Perquisites mean?

Form 12BA is all about Perquisites. Hence, it is important to understand what is first before knowing about the form. Perquisites are actually the special privileges that you receive from an employer in the form of benefits and perks. This includes holiday expenses, travel expenses, club expenses, accommodation, logistics, car, gas electricity, water, free meals, gift vouchers, loan discounts, transfer of assets to employees, stock options, free education, sweeper, gardener, watchman, a personal attendant or secretary. There are other perquisites that qualify to be stated in the perquisites but as an employee this form has to be submitted along with the Form 16 submission.

What is Form 12BA?

An employee or staff receives ‘perquisites’ from his work, Form 12BA is provided by the employing party to the employee. Perquisites are basically the benefits, that are derived from a designation or a position and are in addition to the regular salary that is already being paid to the employee. Some of the simplest perquisites example include interest free loan, automobile, medical facility, extra credit card, furnished or unfurnished house without rent for outstation employees.

This form is a detailed statement with information pertaining to perquisites, other fringe benefits or even amenities as well as profits that are in lieu of salary. according to the, Income Tax Act there are some rules for calculating the final financial value of these perquisites. The value of these payments is represented in the form and also the amount that is taxable for the individual employed for availing these perquisites. This is an additional form that employees receive from their employer in addition to Form 16. “Value of Perquisites u/s17(2) of the Income Tax Act” is already included in the Part B of the Form 16.

Form 12BA Applicability

People who are earning income from Salary , the documents Form 16, and Form 12BA are provided by their employer which includes the details about their salary, tax deducted at source (TDS) as well as perquisites by their employer.

These are meant to be used while computing Tax liability as well as filing Income Tax return pertaining to the Income Taxation law in India . Taxation on income has the details of Form 16. However, Form 12BA adds to the details of Perquisites provided by the employer to employee. However, it is important to understand that Form 12BA is applicable for any employee regardless they receive any perquisites or not. The ones who do not have any perquisites from the company, they too should receive the same, stated by their employer that they have not received any perquisites from the employer in the form.

Form 12BA Format and How to fill the Form?

The first section of Form 12BA:

The first part of the form gives details about the employer as well as the employee as shown in the image below. 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. which in Form 16 is mentioned as Assessment Year, although their value is the same.

First Section of Form 12BA

Value of Perquisites Section:

As you can see the image below, 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.

Value of Perquisites Section

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. The picture given below adds more clarity to this section.

Details of Tax Section

Declaration from the Employer Section: This 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, as shown below in the following image of the form.

Declaration from the Employer Section

Form 12BA and Form 12B

People often confuse Form 12BA with Form 12B, as the difference is more than just the added letter. Form 12B is required when people change their job in the middle of a Financial year. The details of previous employment is provided to the new employer of the employee is provided in Form 12B. Changing jobs often causes a situation where an employee's gets tax exemptions twice than what he is privileged to from his earlier employer and from his new employer. The income earned from the earlier job has to be clubbed along with the income from the newer job to calculate the total tax that is payable for the year.

Where can I find Form 12BA?

This form is available online as a pdf downlaod which has to be printed and filled. However some websites provide the excess option of downloading an excel sheet which can be filled on the system itself through MS Excel and then finally printed out. This is a faster options for companies with higher number of employees to cover.

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