Perquisites (perks) are non-cash benefits provided by the employer over and above salary. Taxable perquisites include: rent-free or concessional accommodation, company car used for personal purposes, club membership fees, interest-free or concessional loans above Rs 20,000, ESOP gains, and medical reimbursements exceeding Rs 15,000. Each has a valuation rule under the Income Tax Rules.
Zoho Payroll generates Form 12BA for employees who receive perquisites. The perquisite values must be entered in the system during the financial year. At year end, Zoho Payroll includes the perquisite values in TDS computation and generates Form 12BA as part of the annual tax certificate package alongside Form 16.
Perquisite values are added to gross salary for TDS computation. For example, if a company car has a perquisite value of Rs 28,800 per year (based on engine capacity and actual cost rules), this amount is added to taxable salary. Zoho Payroll includes entered perquisite values in the annual TDS calculation so the employee is correctly taxed on all benefits.
Form 12BA is a perquisite statement issued to employees whose annual salary exceeds Rs 1.5 lakh, listing all taxable perquisites (fringe benefits) provided by the employer and their values. Zoho Payroll generates Form 12BA at year end for employees with declared perquisites, alongside Form 16.
Form 12BA must be issued along with Form 16 by June 15 following the financial year end. It is required only for employees earning above Rs 1.5 lakh per year who have received perquisites. Zoho Payroll generates it as part of the annual tax document package.
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