Form 12BA 

Form 12BA applies to perquisites that an employee receives as a benefit or reimbursement for benefits. These benefits are over and above the Employee’s salary. Form 12BA income tax applies to such additional benefits, perks or fringe benefits. Form 12BA of Income Tax is a statement of such benefits that might be in the form of amenities, perquisites and other fringe benefits that might be monetary or non-monetary in nature. 

Let us learn about these perks, Form 12BA of income tax meaning, 12BA applicability, the difference between Form 12B and Form 12BA, and Form 12BA constituents in detail. 

What are Form 12BA taxable perks? 

There are two types of employment perks viz. Monetary and non-monetary. 

Companies offer monetary perks in the form of cash as a direct payment or as an expense reimbursement. A few examples of monetary benefits are medical bills, helper salary, electricity bills, education expenses, vaccination expenses, diagnostic testing reimbursement and more. 

Apart from the salary and monetary perks, an employer might provide a few non-monetary benefits to their employees, such as:

• Employee Stock Options (ESOPs) or Restricted Stock Units (RSUs)
• Concessional or rent-free accommodation
• Superannuation fund contribution by the Employer 
• Meal Allowance
• Gift vouchers, discount vouchers, gifts and similar perks

There are rules applicable to the valuation of different perquisite types by the Income Tax Authorities, detailed in Form 12BA. 

What is Form 12BA applicability?

Form 12BA only applies when the taxpayer’s remuneration as an employee is more than ₹1.5 lacs. If the Employee’s salary is within ₹1.5 lacs, the perquisites mentioned in the ‘Part B’ section of Form 16 would be sufficient. 

To calculate the threshold of ₹1.5 lacs as salary, the following particulars are included and excluded. Please refer to the table below.

Inclusions for calculating salary	Exclusions for calculating salary
Pay and Allowances	Dearness allowance (except while computing retirement benefits superannuation)
Bonus	Employer’s PF contribution
Commission	Exempt allowance
Any other monetary benefit given to employees	Value of Perquisites
	Termination, Gratuity, Voluntary Retirement or Superannuation-related lump sum payments
	Severance Pay
	Gratuity
	Leave Encashment
	Pension and other similar payments

Even if the Employer gives no perquisites, they must issue Form 12BA. In this case, they can mention that the employees have not received any perquisites in Form 12BA.

What is the difference between Form No. 12BA and Form No. 12B? 

Form 12B and Form 12BA of the Income Tax Act differ on the basis of their issuing authority, frequency and details required to be furnished on the statement. 

The points of difference are elaborated on in the table below.

Basis for Differentiation	Form 12B	Form 12BA
Issuing Authority	The employee submits Form 12B to the employer	The employer issues Form 12BA to its employee
Frequency	The employee fills and submits Form B to the employer while joining a new company in the middle of a financial year.	The employer issues it to its employees by 15th June of the ongoing financial year.
Details Required	Salary, Tax Deduction at Source (TDS) by the previous employer	A detailed record of perquisites and fringe benefits

What are the constituents of Form 12BA? 

Form 12BA constituents are elaborately represented in the table below.

Part A	Part B	Part C	Part D
Employer Details	Employee Details	Salary and Employee-reported Income Details	Other Details
Employer’s Name and Address	Employee’s Name and Address	Salary paid by the Employer	Any other relevant detail as required
Tax Deduction and Collection Account Number (TAN) of the Employer	Employee’s PAN	Perquisites, other allowances, profit in lieu, and non-monetary perks given to the Employee

The four parts mentioned in the above table are followed by a declaration and verification. Since Form 12BA is issued by the Employer, the declaration and verification of details require the Employer’s signature, date and designation.

What is the process for downloading Form 12BA? 

It is mandatory for the Employer to issue Form 12BA if the Employee’s salary exceeds ₹1.5 lacs. The Employer must submit Form 12BA along with Form 16 for the Employee. Here are the steps to download Form 12BA. 

• Visit the Income Tax Department’s official website and log in using your credentials
• Go to Downloads and then ‘Income Tax forms.’ 
• Enter the details and download the Setup file 
• Extract the files in your system 

Conclusion

Form 16 and Form 12BA are two of the essential documents of salaried persons. Form 12BA is a part of the Form 16 annexure. It provides details about the perquisites or fringe benefits given to the employees during a financial year.