ITR Filing 2026: Why Form 12BA Collection By April 30 Is Important For Salaried Taxpayers

Salaried employees should keep track of an important tax document before filing their income tax return (ITR) this year. Form 12BA provides information of benefits, known as perquisites that an employee gets from an employer, in addition to salary. It has been renamed as Form No. 123 under the Income Tax Rules, 2026. This form is issued to employees earning more than Rs 1.50 lakh per annum and shows the various benefits received by the employee in cash and kind during the financial year. The form is not issued if the benefits are not provided.

April 30 Key Date For ITR

Employers should issue Form 12BA or Form 123 on or before April 30 of the following year. Form 123 for Tax Year 2026-27 is expected to come by April 30, 2027. This document helps in the correct reporting of income while filing ITR. The last date for submission of the ITR for AY 2026-27 is July 31, 2026 for the majority of taxpayers including salaried, pensioners and students.

For the next cycle, Form 123 for Tax Year 2026-27 is expected to be released by April 30, 2027. The last date for filing ITR for that year will be July 31, 2027.

Tax Exemption On Meal Cards

One of the common benefits claimed in Form 12BA is the meal card, such as employer-provided cards for daily meals.

In Tax Year 2026-27, the tax exemption for meal benefits is up to Rs 200 per meal in both the old and the new tax regimes. But for AY 2026-27, tax exemption is up to Rs 50 per meal and is available only for the old tax regime.

These perquisites are mentioned in the form as a part of perquisites and need to be considered for the calculation of taxable income.

Details Included In Form 12BA

Form 12BA contains details of various benefits offered by the employer and their value and taken into account after consideration of any refund paid by the employee. This includes benefits, such as employer-provided housing, car, watchman or a personal helper. It also includes costs for utilities, such as electricity, gas and water.

Other items include interest-free or low-interest loans, travel or holiday expenses, free meals and education assistance. The form also includes gifts, vouchers and credit card or club expenses.

Use or transfer of company property, employee stock options or contributions to certain funds may also be shown. It will also show returns on the contributions.

It is important for employees to carefully review the form. Form 12BA form gives employees an idea of the total remuneration they receive from their employers, not just their remuneration. It is used as a reference for filing ITR. If the details in this form are not properly included in the ITR, it may lead to differences in reported income. It could also result in getting notice or delay in processing the return.