In this post, we will look into the CBDT changes in Form 12BA based on the Income from employees’ salary.

Changes in Form 12BA

4 new columns are introduced in Form 12BA, and they are Col 16, Col 17, Col 18, and Col 19. The existing columns 17, 18, and 19 are changed to Cols., 20, 21, and 22 respectively.

The 4 major changes notified in Form 12BA are mentioned below:

  1. Col 16 is required to report “Stock options allotted /transferred by employer being an eligible start-up referred to in section 80-IAC.”.
  2. Col 17 should report “Stock options (non-qualified options) other than ESOP in col 16 above.”.
  3. Col 18 should report “Contribution by the employer to fund and scheme taxable under section 17(2)(vii).”.
  4. Col 19 will report “Annual accretion by way of interest, dividend, etc. to the balance at the credit of fund and scheme referred to in section 17(2)(vii) and taxable under section 17(2)(viia).”

Note:

  • In Finance Act, 2020 clause (vii) of Section 17(2) provides that perquisites would include any contributions made by the employer to the account of an employee in a recognised Provident Fund, NPS, etc. to the extent it exceeds Rs. 7.50 Lakh in a year.
  • Clause (viia) of Section 17(2) says that amount of interest, dividend, etc. (annual accretion) earned on funds or schemes if it relates to the employers’ contribution in excess of Rs. 7.50 Lakh in the employees account as stated in clause (vii), will be included in perquisites.

All the above-mentioned amendments are applicable from AY 2021-22.

You can find the official government notification Here.

With that, we have come to the end of this post. Share your queries and opinions with us in the comment section below.

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