Employees with income from sources other than salaries will be required to furnish a new Form 12BAA starting from the next financial year. This form was introduced by the Central Board of Direct Taxes ( CBDT ) on October 15, 2024, through the Income-tax (Eighth Amendment) Rules, 2024.
New Income Tax Form 12BAA – Income-tax (Eighth Amendment) Rules, 2024.
The new Form 12BAA is designed not only for reporting non-salary income but also to include Tax Collected at Source (TCS) details, which is a significant update from the existing form. This additional requirement ensures more comprehensive reporting for employees. The employees still have to file the Form 12BA with Form 12BAA.
Details to be Furnished in New Form 12BAA
The new Form 12BAA is straightforward, requiring employees to provide details of both Tax Deducted at Source (TDS) and Tax Collected at Source (TCS). This form serves as a statement under sub-section (2B) of section 192.
For Details of Other Tax Deducted at Source, employees must furnish the following information:
For Details of Tax Collected at Source, employees need to provide:
Get a Handbook on TDS Including TCS as Amended up to Finance Act 2024, Click Here
Additionally, the form includes a section for reporting losses under the head “Income from house property”, with dedicated fields for the amount and relevant details. Finally, the employee is required to sign a verification statement, confirming the accuracy of the information provided.
Along with these details, the employees have to provide their Name and address, PAN and Financial year.
FORM 12 BA
Now, turning to the existing Form 12BA, the employers are required to submit this form without question. Employers with income from sources other than salary must complete this form annually. Starting next year, the employees will also need to submit the newly introduced Form 12BAA.
Get a Handbook on TDS Including TCS as Amended up to Finance Act 2024, Click Here
The Form 12BA is the Statement showing particulars of perquisites, other fringe benefits or amenities and profits in lieu of salary with value thereof under rule 26A(2)(b) provided to the employees.
COMPARISON BETWEEN FORM 12BAA and 12BA
The main comparison between the forms is that the Form 12BA is to be furnished by the employer and the form 12BAA is to be furnished by the employees.
The Form 12BAA is the Statement showing particulars of perquisites, other fringe benefits or amenities and profits in lieu of salary with value thereof under rule 26A(2)(b), while Fom 12 BAA is the Statement showing particulars for the purposes of sub-section (2B) of section 192 and under rule 26B.
Get a Handbook on TDS Including TCS as Amended up to Finance Act 2024, Click Here
In the existing form, the employer has to mention which type of perquisites is received by the employees like Accommodation, Cars/Other automotive, Gas, electricity, water, Holiday expenses, Interest free or concessional loans, Free education, Contribution by employer to fund and scheme taxable under section 17(2)(vii)..etc. The Value of perquisite as per rules, amount, if any, recovered from the employee and the amount of perquisite chargeable to tax has also to be furnished.
In the form 12BA, Tax deducted from salary of the employee under section 192(1), Tax paid by employer on behalf of the employee under section 192(1A), Total tax paid and Date of payment into Government treasury also has to be furnished.
Coming to Form 12BAA, the employee has to furnish the form detailing their TDS, TCS and losses from house property.
CHANGES IN FORM 16 AND FORM 24Q
in Form No. 16, in Part B (Annexure-I), in the table, for the row numbered 19 and the entries relating thereto, the following shall be substituted, namely :––
| “19 | Less: Tax deducted at source as per Form No. 12BAA submitted under provisions of section 192(2B) | Rs. | ||
| 20 | Less: Tax collected at source as per Form No. 12BAA submitted under provisions of section 192(2B) | Rs. | ||
| 21 | Net tax payable ( 17-18-19-20) | Rs. “ |
in Form No. 24Q, in Annexure II, in the table,––
(i) in column (388), the words and brackets “or deductor(s)” shall be omitted;
(ii) after column (388), the following column shall be inserted, namely:––
| “Amount reported as per section 192(2B), of other tax deducted at source or tax collected at source, other than (388) |
| (388A)”; |
Get a Handbook on TDS Including TCS as Amended up to Finance Act 2024, Click Here
(iii) in column (389), –
(I) after the word “deducted”, the word “/collected” shall be inserted;
(II) after the figures “388”, the figures and letter “+388A” shall be inserted.
IMPACT
While employees filing their ITR, it is mandatory for them to submit the Form 16, a certificate provided by the employer for deducting their tax. However, now the new Form 12BAA has to be furnished by the employees from the next financial year filings. Through this furnishing, the government is able to know the TDS, TCS and the losses in income from house property details comprehensively.
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