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Form 12BA: Meaning, Format, Importance, and Applicability
Have you received perks from your employer? Do you know the details of the perks and allowances your employer provides? If not, get your Form 12BA now? This article describes the Form 12BA in detail and how it is important to an employee.
Form 12BA
Form 12BA is an add-on statement issued to support Form 16. It is a statement showing particulars of perquisites, other fringe benefits, or amenities, and profit in lieu of salary with value thereof. The nature and the value of perquisites is important to determine the correct tax liability of the employee. Therefore, Form 12BA is issued by the employer to the employee similar to Form 16. While Form 16 provides the tax computation of employees in a summarized manner, Form 12BA provides the details of value of perquisites, if any, mentioned in Form 16. A few examples of perquisites as per Form 12BA includes:
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Accommodation
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Cars/other automotive
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Sweeper, gardener, watchman, or personal attendant
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Gas, electricity, water
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Free meals
Applicability of Form 12BA
Form 12BA is usually applicable when an employer provides employees with the fringe benefits or perquisites in addition to salary. For instance, rent free accommodation, stock options, car parking, medical reimbursements, and so on. It is an addendum to Form 16, which gives a basic overview of the computation of total income of employees.
The details of perquisites and other benefits should be provided to employees to ease their tax filing and determine accurate tax liability.
Form 12BA is often issued along with Form 16 and thereby the last date of issuing Form 16 is complied with, that is, June 15 of the assessment year to the previous financial year.
What is the use of Form 12BA?
Form 12BA is the simplified version of perquisites received by employees in accordance with the Income Tax provisions. The bifurcation of the total value of perquisites in accordance with Rule 26A(2)(b), amount recovered from employees, if any, and the perquisites chargeable to income tax makes it easier for anyone to understand the taxability of perquisites. As a result, Form 12BA supports Form 16 and simplifies the tax calculation of individual employees.
When should an Employer issue Form 12BA?
Form 12BA should be issued by the employer when an additional benefit in the form of perquisites and other allowances are provided to the employee, whether in monetary form or nonmonetary. However, Rule 26A(2)(b) mandates the issuance of Form 12BA if the salary paid or payable to the employee exceeds INR 1,50,000 per annum.
Content of Form 12BA
A Form 12BA is expected to provide the details of perquisites, and other benefits received by the employee along with the salary. The monetary value of benefits provided in kind should also be provided. Any amount recovered from employees should be mentioned and the net value of perquisites chargeable to tax should be mentioned. In general Form 12BA contains the following details:
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Name, address, TAN details, TDS assessment range, of the employer.
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Name, designation, PAN, and Aadhaar Number of employee.
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If the employer is a company, whether or not the employee is a director should be specified.
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Amount of income under the head ‘Salaries’ excluding the value of perquisites.
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Financial year.
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Value of perquisites.
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Declaration by the employer along with signature.
The format of Form 12BA is as below:
How to Fill Form 12BA?
Form 12BA is provided by the employer to the employee detailing the perquisites provided during the financial year. The basic overview of how to fill Form 12BA is as below:
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Part A: Details of the Employer: The details of employer such as name, address, Tax Deduction and Collection Account Number (TAN) should be provided under this section.
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Part B: Details of the Employee: The details of employee such as name, address, and PAN should be provided under this section.
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Part C: Details of salary paid and any other income reported by the Employee: This section will provide details of salary paid to the employee, other allowances, profit in lieu of salary, perquisites, and contribution of employee towards the same.
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Part D: Other information: This section will provide details of other information, if any.
Part E: Declaration and Verification: The employer will provide the declaration and verification by signing Form 12BA and indicating the date of issuance.
Difference between Form 12BA and Form 12B
Even though both the Forms 12BA and 12B are issued under Rule No. 26 of the Income Tax Act, 1961, they serve different purposes. Here are the main differences between the two:
Form 12BA | Form 12B |
|---|---|
Form 12BA is issued by the employer to the employee specifying the details of perquisites and other benefits received by him during the financial year. | Form 12B is submitted by the employee to the new employer upon switching the job. It provides the details of previous salary, other benefits, and tax deducted so far during the financial year. |
Employer provides Form 12BA to the employee. | Employee submits Form 12B to the new employer. |
Difference between Form 12BA and Form 12BB
Following are the points of differences between Form 12BA and Form 12BB:
Form 12BA | Form 12BB |
|---|---|
Form 12BA provides the details of perquisites and other allowances given to the employee during the financial year. | Form 12BB is the statement detailing investments and claims made by an employee during the financial year. |
Employer provides Form 12BA to the employee to aid in income tax filing. | Employees are required to submit Form 12BB to the employer. |
If Form 12BA is shared on time, the tax liability of the employee is accurately determined. | The timely submission of Form 12BB enables accurate tax calculation of employees. |
Frequently Asked Questions
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What is Form 12BA?
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Form 12BA provides the details of the perquisites and allowances received by the employee during the financial year.
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Who issues Form 12BA?
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An employer is required to issue Form 12BA every financial year along with Form 16. It is issued to provide the detailed information on the value of perquisites provided to an employee.
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Is there a standard format of Form 12BA? From where to get the same?
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Yes. There is a standard format of Form 12BA which can be downloaded from https://incometaxindia.gov.in/pages/downloads/forms.aspx?c=7
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Form 12BA should always be provided to the employee. True or False? Explain with reason.
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False. In cases where the salary of the employee is more than INR 1,50,000 per annum, issuing Form 12BA is mandatory. However, when employees are provided with the perquisites or allowances, Form 12BA should be issued irrespective of the quantum of salary.
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What is the significance of Form 12BA?
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Form 12BA simplifies the computation of perquisites and the tax liability thereon. It helps in computing the tax liability of the employee accurately.
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Can an employee issue Form 12BA for ownself?
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No. Form 12BA is to be issued by the employer, not the employee. The declaration on Form 12BA is signed and certified by the employer only.
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What is the last date for issuing Form 12BA?
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Form 12BA is generally accompanied with Form 16. Therefore, the last date for issuing Form 12BA is the same as Form 16, that is, June 15 of the assessment year of the relevant previous year.
Q
Explain the difference between Form 12BA and Form 12B.
A
Form 12BA is issued by the employer providing the details of the value of perquisites or allowances received by the employee during the financial year. Whereas, Form 12B is submitted by the employee to the new employer providing the details of last salary drawn and tax deducted on the same.
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Explain the difference between Form 12BA and Form 12BB.
A
The employer issues Form 12BA, which provides information about the value of perquisites received by the employee during the relevant financial year. Form 12BB, on the other hand, is the statement of investments and claims made by the employee during the financial year. Form 12BB is prepared by the employee.
Prachi Jain
Chartered Accountant
Prachi Jain is a Chartered Accountant with a passion for simplifying finance and tax-related matters through her insightful and informative blogs. With a background in finance and a deep understanding of tax regulations, Prachi has established herself as a trusted source of financial wisdom. Prachi is committed to empowering her readers with the knowledge they need to make informed financial decisions. Her expertise and dedication shine through in every blog post, helping her audience navigate the intricacies of finance and taxes with confidence. Follow Prachi Jain's blog for practical insights and guidance on managing your finances effectively.
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