Understanding Income Tax Form 12 BA with Automated Master of Form 16 Part B with Form 12 BA for Financial Year 2014-15

Click to download Automated Master of Form 16 Part B with Form 12 BA for the FY 2014-15 [ This Excel Based Utility can prepare at a time 50 employees Form 16 Part B with 12 BA] 

For person earning
income from Salary , documents Form 16, and Form 12 BA  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. Tax on income we looked into details of Form
16. Form
12 BA
 give details
of Perquisites given
by the employer to employee. In 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 12 BA shows the information about
perquisites.

Form 12 BA

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.
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.
Please don’t confuse Form
12BA with Form 12B, difference is more than just the one 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.
Changing Jobs:Take Care Of Bank Account,Tax Liability discusses
it in detail.

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.

Click to download Automated Master of Form 16 Part B with Form 12 BA for the FY 2014-15 [ This Excel Based Utility can prepare at a time 50 employees Form 16 Part B with 12 BA]

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