Difference Between Form 12B and 12BA

Hi friends.......as we already know that Form 12BA is important while computing the taxable amount of salary....then what is Form 12B...? How is it use full for us.....?? Lets have a look.......

FORM 12B:

If a person joining any organisation in the middle of the Financial Year and furnishing the details of income earned from the previous employer he is required to furnish Form 12B as per rule 26A.

It is a form required to be submitted to the employer by the new employee furnishing the details of old employee which are specified as under.

1. Any professional tax paid by the employee.
2. TDS on salary deducted by the previous employer
3. Details of previous employer such as PAN Number, TAN Number.
4. Deductions with respect to Provident Fund and details of Rent Free Accommodation (if any).
5. If any deductions under Section 80C, Section 80G. Section 80E, Section 80D and Section 24.
6. Break up of salary like Basic Salary + DA, Perquisites, House Rent Allowance, Leave Travel Allowance, Leave Encashment etc;

Form 12B is required to be furnished even if no TDS is deducted by the previous employer. The details in Form 12B are required to be furnished based on the salary slip and Form 16 issued by the previous employer to the employee.

Form 12B appears as below.......

Form 12B should be duly filled and must be signed by the employee. And based on the details furnished by the new employee, the employer issues a  consolidated Form 16 at the end of the year.

Furnishing Form 12B and Form 16 is not mandatory as per the rules of Income Tax Act, but it is advisable to furnish these details to the new employer, or else the employee has to self compute the tax accordingly and file the Income Tax return. If these details are furnished by the employee then it becomes the liability of the new employer to deduct the TDS on total cumulative salary received by the employee from the previous employer and new employer will deposit the same with the bank.

By doing so the employee can reduce his Tax liability.

FORM 12BA:

Form 12BA is a statement showing particulars of perquisites, fringe benefits and profits in lieu of salary with value thereof. It comes under Section 26A(2)(b).

A person who is earning income from Salary, documents Form 16, Form 12BA are provided by the employer which has details about Salary, Perquisites, and Tax Deducted at Source (TDS). These are used while calculating tax liability and filing Income Tax Returns.
12BA form appears as below.....