What is Form 12BA ?
Form 12BA is a statement prescribed under Rule 26A of the Income Tax Rules, 1962, in India. It is used by employers to provide a detailed breakdown of perquisites, other fringe benefits, and profits in lieu of salary given to an employee during a financial year. This form is issued alongside Form 16, which provides the employee’s salary and tax details.
Purpose of Form 12BA:
To disclose the details of perquisites and fringe benefits provided to an employee.
To ensure transparency in reporting benefits and their taxable value for income tax purposes.
Key Components of Form 12BA:
Employee Information:
Name and designation of the employee.
PAN (Permanent Account Number) of the employee.
Employer Information:
Name and address of the employer.
TAN (Tax Deduction and Collection Account Number).
Perquisites Details:
Value of perquisites provided, such as:
Accommodation.
Vehicle or transport allowance.
Club membership fees.
Educational expenses for children.
Medical reimbursements.
Stock options.
Taxable value of these perquisites.
Other Benefits:
Any fringe benefits or profits in lieu of salary.
Tax Deducted:
Details of the tax deducted at source (TDS) on perquisites.
Importance of Form 12BA:
For Employees:
Provides a clear understanding of the taxable value of perquisites received.
Helps in accurate filing of income tax returns.
For Employers:
Ensures compliance with income tax rules by accurately reporting perquisites and benefits.
Submission Process:
The employer prepares Form 12BA and issues it to the employee along with Form 16 at the end of the financial year.
Difference Between Form 12BA and Form 16:
Form 16: A summary of the salary paid and TDS deducted during the year.
Form 12BA: A detailed statement of perquisites, other benefits, and their taxable value.
Form 12BA is essential for accurate tax computation and compliance for employees receiving perquisites or non-monetary benefits as part of their compensation.