Form 12BA is an essential income tax document that provides a detailed statement of perquisites, fringe benefits, and other related salary components received by an employee during a financial year. As mandated under Rule 26A of the Income Tax Rules, 1962, employers must furnish Form 12BA to employees if they receive perquisites such as rent-free accommodation, company-provided vehicles, stock options, or other non-monetary benefits. This form helps in accurate tax computation and compliance with income tax regulations.

For businesses managing contract workers, gig employees, and blue-collar workforce, ensuring Form 12BA compliance helps in transparent payroll processing, tax accuracy, and streamlined financial reporting. Companies use HRMS platforms and payroll automation tools to calculate perquisites, generate tax reports, and maintain statutory compliance. A structured Form 12BA process enhances tax transparency, financial clarity, and legal adherence.