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For person earning income from Salary , documents Form 16, and Form12BA  are provided by employer which has details about his salary, perquisites and tax deducted at source(TDS) by his employer. These are used while calculating Tax liability and filing Income Tax return as explained in Income Tax Overview. In Understanding Form 16:  Tax on income we looked into details of Form 16. Form 12BA give details of Perquisites given by the employer to employee. In  Understanding Perquisites we had looked into what are perquisites, what income tax laws apply to it, about valuation of perquisites and the taxation with an example, which perquisites are exempted from tax, Difference between Perquisite, Allowance and Fringe benefit. In this article we shall see how Form 12BA shows the information about perquisites.

Form 12BA

Form 12BA is statement showing particulars of perquisites, other fringe benefits or amenities and profits in lieu of salary with value thereof. It comes under the Section 26A, subsection 2 point b which is given below, source law.incometaxindia.gov.in:Furnishing of particulars of income under the head “Salaries”

Form No. 12BA, if the amount of salary paid or payable to the employee is more than one lakh and fifty thousand rupees, which shall accompany the return of income of the employee. [Explanation : “Salary” for the purposes of this rule shall have the same meaning as given in rule 3.]

        Note:The limit has changed to one lakh and eight thousand (1,80,000) by circular in 2011.

Employee-Employer Details

The first part gives details about the employer and employee as shown in the image below.

Form 12BA: Details about employer, employee

Form 12BA: Details about employer, employee

  • Employer Details: Name and Address of the Employer, TAN Number.
  • Employee Details: Name and Designation of the Employee, PAN Number of employee.
  • Financial Year: Form 12BA is for which Financial Year. (Note Financial Year is mentioned and not Assessment Year. Form 16 mentions Assessment Year)
For example : For Infosys the TAN number is BLRI01423C. From IncomeTaxIndiaeFiling.gov.in:Know TAN one can find  Assessing Officer(AO) code is:
Area Code:KAR Range Code: 181 AO Number : 2 AOType :  CT
Note: Please note that even indvidual’s PAN number has Assessing Officer Code. But in Form 12BA the Assessing Officer Code of the employer which is associated with TAN number is specified, which specifies the area or jurisdiction to which Employer belongs.
An Assessing Officer is a person who has jurisdiction to make assessment of an assessee, who is liable to pay tax under the Act. The designation may vary according to the volume of income/nature of trade Assessing officer may be an Income-tax Officer, Assistant Commissioner, Deputy Commissioner Joint Commissioner or an Additional Commissioner. Assessing officers work for Central Board of Direct Taxes (CBDT), which is a part of Department of Revenue in the Ministry of Finance.  CBDT provides essential inputs for policy and planning of direct taxes in India, and is also responsible for administration of direct tax laws through the Income Tax Department. To know more about CBDT and the people working for CBDT interested readers can read incometaxindia.gov.in: CBDT and/or go through presentation on slideshare:income-tax-presentation
For the returns which are filed electronically, Central Processing Centre (CPC) at Banglore or Bengluru, processes those returns. Wherever TDS credit cannot be given as per guidelines issued by CBDT and verification of TDS certificates are required, the e-return is transferred to the jurisdictional assessing officer for processing.

These AO codes are used when there is an error in filing returns and more details are needed to verify the tax and income details. Yahoo:ITR Transferred out of CPC to jurisdiction Assessing Officer in Income tax office? or caclubindia.com: Return transferred to jurisdictional assessing officer. shows the queries with respect to jurisdiction Assessing Officer.

Perquisites Details

This part of Form 12BA shows the value of perquisite given to employee, if employee has paid some amount and amount of perquisite that is chargeable as shown in image below:

Form 12BA: Perquisites Details

Form 12BA: Perquisites Details

It is not uncommon to see all fields in perquisite details zero(0) as shown in image below. Hence the form is often ignored by the employee.

Form 12BA: Perquisites entries all 0

Form 12BA: Perquisites entries all zero (0)

Tax Details

This part of Form 12BA shows the tax details as shown in image below.

Form 12BA: Details of Tax

Form 12BA: Details of Tax

 Declaration

This part of Form 12BA shows declaration by the Employer (usually someone from payroll or HR department)  as shown in image below:

Form 12BA: Declaration

Form 12BA: Declaration by Employer

 Form 12B

Please don’t confuse Form 12BA with Form 12B, difference is more than just the letter Form 12B comes into picture when people change job in the middle of the Financial year. Details of previous employment to the new employer are provided by the employee in Form 12B.  Changing jobs often leads to a situation where an individual gets tax exemptions twice than what is due to him—from his earlier employer as well as from his new employer.  The income earned from the previous job has to be clubbed with the income from the new job to compute the total tax payable for the year. Bemoneyaware:Changing Jobs:Take Care Of Bank Account,Tax Liability discusses it in detail. Quoting from CAclubindia:Change of Employment: Form 12B.

According to section 192, it is the option / discretion of the employee whether or not to file Form No 12B. The current employer can’t insist on filing of Form No 12B. If the employee chooses not to file, then employers’ obligation is limited to compute TDS on salary payable by him.

If Form 12B is filed, then current employer can deduct the TDS on salary paid by previous employer (in case no TDS was deducted by previous employer). And if the TDS was deducted by previous employer, any excess or shortfall can also be adjusted.

It is always in the interest of an employee to furnish such details because otherwise there can be duplication of exemptions and deductions and there can be a shortfall in tax deduction and as a result the employee would become liable to deposit advance tax.

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In this article we explained the details about Form 12BA which shows the details on perquisites given to the employee. Looking forward to your feedback. If you found it useful please let us know, it is great encouragement to us.

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