Form 12BA – Overview, Applicability, Format & Much More

A Brief Introduction

In addition to salary, an employee receives various perquisites.

Perquisites, familiarly known as perks, is nothing but the benefits which an employee enjoys on account of his/her job or position. Perks can either be: Monetary or Non-monetary.

Monetary perks - Section 17(1) : Perks which are given in the nature of cash payment are considered to be monetary perks. Either the employer makes the payment on behalf of the employee or reimburses them for the expenses. For eg: Education expenses, Medical bill, Gas bill, helper salary, electricity bill, vacation expense etc. of employee are either reimbursed by employer or paid to respective service provider directly by employer.

Non-monetary perks - Section 17(2): Benefits given in kind are considered to be non-monetary perks. Following are examples of non-monetary perks:

a. Rent free accommodation or accommodation at concessional rent provided by employer.

b. Employee stock options (ESOPs) /Restricted stock units (RSUs)

c. Contribution to approved superannuation fund

The income tax laws have provided for rules on valuation of various kind of perquisites. Income tax provision requires the employers to issue a separate statement providing details of various perquisites given to an employee. All such details will be filled up in Form No. 12BA. In this article, we have discussed Form 12BA in detail:

What is Form 12BA?

Form 12BA is an income tax statement which gives all the details of the perquisites, amenities and other fringe benefits provided by the employer, and profits in lieu of salary.

Applicability of Form 12BA?

Form 12BA is to be issued only when the salary paid or payable to the employee exceeds Rs 1,50,000. If salary does not exceed Rs 1,50,000, details of perquisites which already forms part of ‘Part B’ of Form 16 itself would suffice and there is no requirement of separate statement in the form of ‘Form 12BA’. Hence, Form 12BA is only an additional document to be provided specifically for perquisites. ‘Salary’ for this purpose:

Includes: Basic pay, allowances, bonus or commission or any monetary payment from one or more employers.

Excludes: Dearness allowance which is not considered while computing superannuation or retirement benefits, employer’s contribution to provident fund, exempt allowances, value of perquisites, payments which are specifically excluded from being considered as perquisites, lump-sum payments received at the time of termination of service or superannuation or voluntary retirement such as gratuity, severance pay, leave encashment, voluntary retrenchment benefits, commutation of pension and similar payments.

To be issued even in absence of perquisites: Form 12BA must be issued even in the absence of perquisites. Employer may mention that no perquisites have been received by the employee in Form 12BA.

Perquisites as per Section 17 (2) include the following:-

1. Any rent-free accommodation provided by the employer.
2. Any concession in the rent provided to the assessee by his employer.
3. Any sum payable by the employer in respect of an obligation payable by the assessee.
4. Expenditure for travelling.
5. Any benefit/amenity granted free or at a concessional rate to specified employees etc.
6. The value of any specified security or sweat equity shares allotted or transferred, directly or indirectly, at a concessional rate to the assessee.
7. Any sum payable by the employer, whether directly or through a fund other than a recognized provident fund or an approved superannuation fund, to effect an assurance on the life of the assessee or to effect a contract for an annuity.
8. Contribution amount to an approved superannuation fund by the employer in respect of the assessee.
9. The value of any other fringe benefit or amenity.

When and Who Shall Issue Form 12BA? 

Employers issue Form 12BA along with Form 16 by 15th June of next financial year.

Difference Between Form 12B and Form 12BA

As both Form 12B and Form 12BA are dealt with by same Rule No., Rule 26, people often get confused between the two.

While Form 12BA as discussed above, is a detailed statement of perquisites to be issued by employer to employee, Form 12B is a statement to be provided by employee who is joining new employer in the middle of financial year to his employer with respect to details of income earned from previous employment and tax deducted at source on such income, if any.

Format of Form 12BA

Details of employer such as Name, address, Tax deduction Account Number, assessing officer (TDS) jurisdiction, Details of employee such as Name, designation, Permanent Account Number, Income from salary other than perquisites, Financial year to which details pertain to, Perquisite valuation in detail with respect to each kind of perquisites, perquisite value chargeable to tax, total tax deducted need to be provided. In addition, the total of profit in lieu of salary also needs to be provided.

Download Form 12BA