Perquisite Statement (Form 123 / 12BA).
When you provide perquisites such as a company car, accommodation, ESOP allotments or concessional loans, their taxable value must be worked out, taxed through salary TDS and reported to the employee. For tax year 2026-27 onwards this statement is Form 123 under the Income-tax Rules, 2026; Form 12BA under the 1962 Rules still applies to salary paid up to March 2026.
Valuation runs monthly with payroll so TDS stays correct through the year; the annual statement is prepared with the year-end salary certificates after the tax year closes.
A partner — a chartered accountant or company secretary — from the first call to sign-off.
Based on your situation, and fixed in writing before any work starts.
Is this for you?
- Employers providing cars, housing, club memberships or other perquisites
- Companies whose employees exercised ESOPs during the year
- Businesses giving interest-free or concessional loans to staff
What you receive at the end.
- 01Employee-wise perquisite valuation working
- 02Monthly TDS inputs for perquisites
- 03Form 123, or Form 12BA for earlier years, for each employee
- 04Reconciliation with Form 130 (formerly Form 16) and Form 138 (formerly Form 24Q)
Perquisite Statement (Form 123 / 12BA), step by step.
Valuation runs monthly with payroll so TDS stays correct through the year; the annual statement is prepared with the year-end salary certificates after the tax year closes.
- 1
Perquisite inventory
We list every benefit provided, by employee, and gather the cost and usage facts needed to value it.
- 2
Perquisite valuation
We value each perquisite under the prescribed rules and separate taxable perquisites from exempt benefits.
- 3
TDS integration
We add the values to monthly salary TDS under section 392 (formerly section 192), including any tax you choose to bear for the employee.
- 4
Statement preparation
We prepare Form 123 (formerly Form 12BA) for each employee and reconcile it with the salary certificate and quarterly TDS return.
What we need from you.
Don't have everything yet? We send a short checklist after the first call and work with what you have.
- List of perquisites provided and employees covered
- Car, accommodation and lease details, including cost and ownership
- ESOP exercise details and fair market value reports
- Loan agreements and interest charged to employees
- Amounts recovered from employees for any benefit
The fee depends on your situation. After a short call, the partner who will do the work tells you what's involved and gives you a fixed fee in writing — before any work begins.
- Government fees and statutory charges are billed at actuals.
- When you pay — upfront, in stages or on completion — is agreed in writing with the fee.
Questions about Perquisite Statement (Form 123 / 12BA).
Ready to discuss Perquisite Statement (Form 123 / 12BA)?
30-minute confidential call — no proposal, no commitment. A partner will write back within one business day.