What is Form 12BA | Applicability, Perquisites and Due dates

In this blog, we will discuss the following topics of form 12ba-

• What is Form 12BA
• Perquisites in Form 12BA
• Applicability of 12BA
• Form 12BA due date.
• Who shall issue this Form and when?
• Difference between Form 12BA and 12B
• Form 12BA format
• FAQs

What is Form 12BA

According to Income Tax, it is the detailed statements and the lists of specific perquisites, amenities given by the employer to the employee which are the benefits in lieu of compensations and fringe benefits.

For example – 

• Accommodation facility
• Free meals
• Free education
• Movable assets
• Vouchers and others.

Perquisites in Form 12BA

Perquisites are perks or benefits that an employer gives to the employee in exchange for the services that the employee gives to the employer. And there are additional benefits apart from their compensation.  Such as – Travel expenses, outright in cash, holiday expenses, medical expenses, credit expenses, club expenses, free meals, non-cash incentives, stock options, rent-free accommodations, and superannuations. 

As per the income tax rules, Form 12BA is only the combined statement of benefit that is given to an employee by the employer, also, it is provided for a requirement of issue of separate statements that provide details of numerous perquisites that are given to the employee. Click here for more details about prerequisites.

Applicability of 12BA

It is applicable for all individual salaried persons who are earning more than ₹1,50,000. This form is submitted with Form 16. Form 16 shows the complete details of income tax while Form shows details about the prerequisite that the company has provided.

So, there is the information which is included and excluded in the details of this Form.

Included

• Basic Pay,
• Commissions
• Bonus
• Allowances
• And others monetary payments

Excluded – 

• Dearness allowances
• Lump Sum payment
• Exempt allowances
• Value of perquisite
• Employer’s Contribution to PF
• Voluntary retrenchment
• Leave encashment
• Computation of pension
• Superannuation

So, as per the income tax rules, the calculation of the financial value of all these perquisites has been shown in this Form with the value of the amount which is taxable for individuals employed who can avail of the perquisites.

Note – As an employer, you can mention that no perquisites have been issued to the particular employee. And  this Form needs to be issued even in the absence of any perquisites.

Form 12BA due date

An employer needs to provide Form 12BA along with Form 16 to the employee on or before June 15th or immediately after the completion of the financial year.

Who shall issue this Form, and when?

Along with Form 16, Form 12BA is issued by the employer. And it needs to be issued when the annual payment is more than 1,50,000, including Basic Pay, Bonus, Commission, Allowances and others.

Difference between Form 12BA and 12B

Difference between Form 12BA and 12B  are as follows –

Form 12BA format

To fill the form you need to mention the following details which are categories in two sections, that you can see below there.

Section 1 – 

1. Name and address of the employer
2. TAN number
3. Income details
4. Value of the perquisites
5. Designations
6. Financial year
7. TDS range of the employers

Section 2 – 

1. Mention the details of each perquisites
2. Profits in lieu of compensations
3. TDS details
4. Value of Chargeable perquisites
5. Date of money transferred to the government
6. Details of employees’ Tax and deduction
7. A sum of tax paid
8. Employers remitted taxes made on behalf of employees.

There is the particular format of particular Form with the perquisites benefits.

FAQs

Who will issue the Form 12BA?

Along with Form 16, an employer willissue Form 12BA in every financial year. Basically, Form 12BA provides detailed information on the value of the perquisites which is provided to an employee.

Can an employee issue Form 12BA for himself/herself?

No, An employee can’t issue Form 12BA, it is issued by the employer with the declaration on Form 12BA which is signed and certified by the employer. 

Form 12BA should always be provided to the employee. True or False?

False, If an employee’s salary exceeds INR 1,50,000 p.a., Form 12BA have to be issued. Additionally, when employees receive perquisites or allowances, Form 12BA should be issued regardless of the salary amount.

This is the end of our discussion on Form 12BA. Let’s know your other questions and opinions on this topic. Mention below the comment box.

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