Form 12BA is a tax revenue document that details requirements, employer-provided perks, gains instead of salaries, as well as other benefits packages. The sum of the payouts and the taxable amount owed to the Central Government by the beneficiaries are shown on Form 12BA. This form, together with Form 16, is given to employees.
The organization must provide Form 12BA to the employee as a statement of perquisites or incentives. In place of salary income, it provides a complete explanation of perks, bonuses, profiles, and so forth.
If an employee’s yearly compensation exceeds Rs. 1,50,000, he or she will be issued Form 12BA. If not, the information on Form 16’s ‘Part B’ is deemed adequate.
It should be emphasized that Form 12BA must be completed if an employee’s remuneration exceeds Rs. 1,50,000, regardless of whether or not perquisites were supplied in that year. In the latter scenario, the company is required to produce a note of it on the form.
Employers must submit this application by June 15th of the year after the current year’s fiscal year. Considering that all these documents must be submitted at the same time, the date is made in line with the Form 16 due date.
Perquisites, often known as benefits, are perks that a company gives to employees in exchange for their services. These advantages are further divided into two categories:
Benefits that are exclusively available in cash are referred to as monetary advantages. It covers transportation and vacation costs.
Rent-free housing, meal allowance, a car, gift cards, and other non-monetary incentives are available.