Annual Salary Statement: Form 12BA / Form 123
Prepare the employer's statement of salary, perquisites and profits in lieu of salary for an employee, issued with the TDS certificate.
Law version: FY 2025-26 (Income-tax Act, 1961); Tax Year 2026-27 onwards (Income-tax Act, 2025). Checked on 26 Sep 2026.
What it is
Where an employee receives perquisites, such as a car, accommodation, ESOPs or concessional loans, or salary above the prescribed limit, the employer gives a statement of the value of perquisites and profits in lieu of salary. Up to FY 2025-26 this was Form 12BA under Rule 26A; from Tax Year 2026-27 it is Form 123 under Section 392(5)(a) and Rule 204 of the Income-tax Rules, 2026. It accompanies the TDS certificate (Form 16 for FY 2025-26, Form 130 from Tax Year 2026-27).
When it is used
- Issuing year-end TDS documents to employees.
- Employees with perquisites such as accommodation, car or ESOPs.
- An employee asks for a break-up of salary for the return.
What the template covers
- Employer name, address and TAN
- Employee name, PAN and designation
- Year
- Basic salary, HRA, allowances and bonus
- Value of perquisites and profits in lieu of salary
- TDS deducted, signatory and date
Details you will need
The generator asks for the following. Fields marked with an asterisk in the form are required; the rest can be left blank and filled in later in Word.
Employer
Employer Name; Employer Address; TAN
Employee
Employee Name; PAN; Designation; Financial Year / Tax Year
Salary
Basic Salary (₹); HRA (₹); Other Allowances (₹); Bonus / Commission (₹); Value of Perquisites (₹); Profits in Lieu of Salary (₹)
TDS
TDS Deducted during the year (₹)
Signatory
Signatory Name; Designation; Statement Date
Stamp duty, registration and filing
Perquisites are valued under the rules for the year and taxed as salary, with TDS by the employer. The statement is issued with the TDS certificate by the due date, which for FY 2025-26 is 15 June 2026 and for Tax Year 2026-27 is 15 June 2027. Check the valuation rules and due dates on incometax.gov.in.
Form 12BA and Form 16 apply to FY 2025-26. From Tax Year 2026-27 they are replaced by Form 123 and Form 130.
Generate the Annual Salary Statement (Form 12BA / Form 123)
Fill in the form and download the draft as a Word file. It is a general template, not legal or professional advice; have it reviewed for your facts before you sign or rely on it.
Need this checked against your facts, or the registration or filing that follows (e.g. TDS returns, ITR)? Contact SKAG and Associates
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Frequently asked questions
Is Form 12BA required for every employee?
It is required where the employee gets perquisites or profits in lieu of salary, or salary above the prescribed limit.
What replaces Form 12BA from 2026-27?
Form 123 under the Income-tax Rules, 2026.
Is the employee required to file this with the return?
No. The employee keeps it and uses the figures in the return.
This page gives general information for reference only. Laws, stamp duty rates and filing requirements change and differ between States, so confirm the current position for your case. Related: all document templates · free tax calculators · compliance calendar and guides.