What Is Form 12BA?
Form 12BA is a detailed statement provided by employers to employees in conjunction with Form 16, which outlines the specifics of perquisites (perks or fringe benefits), other benefits, and amenities provided to the employee. It’s a crucial document for income tax purposes in jurisdictions like India, detailing non-salary compensations that may be taxable under the Income Tax Act. This form helps in ensuring transparency and accuracy in tax filings related to employee compensation.
Form 12BA Key Features
Detailing Perquisites: Lists all perquisites provided to an employee by their employer, including but not limited to company cars, housing, loans at concessional rates, etc.
Tax Implications: Helps in understanding the tax implications of various benefits provided, ensuring accurate calculation of taxable income.
Accompanies Form 16: While Form 16 details an employee’s salary income and tax deducted at source (TDS), Form 12BA provides specifics on non-salary benefits.
Mandatory Issuance: Employers must issue Form 12BA to employees receiving perquisites, irrespective of the income level of the employee.
How Does It Work?
Compilation of Perquisites: Employers assess and compile details of all perquisites and other benefits provided to each employee over the fiscal year.
Calculation of Taxable Value: The taxable value of these perquisites is calculated based on rules defined under the Income Tax Act.
Preparation of Form 12BA: Employers prepare Form 12BA for each applicable employee, detailing the perquisites and their taxable value.
Issuance to Employees: This form is issued to employees alongside Form 16, providing them with comprehensive details required for income tax filing.
Tax Filing: Employees use the information provided in Form 12BA to file their income tax returns accurately, declaring all sources of income and calculating tax liability accordingly.