Executive Summary:

Form 12BAA is a statement furnished by the employee to the employer stating the amount of taxes deducted and collected at source from other sources of Income during the Financial Year.

Consequent to the announcements made in the Budget (2) of 2024, In order to ease the complications in tax calculations and reducing the compliance process, the CBDT in its notification No. 112-2024 dated 16 October 2024, introduced the Form 12BAA – where employees have the option to declare their other sources of Incomes (other than Salary) along with the details of Tax Collected at Source (TCS) and Tax deducted at Source (TDS) from transactions during the financial year. This declaration is made with an aim to consider and help calculate & arrive at the most optimal Tax calculations. This is expected to net off any excess deductions and adjust the taxes payable by the Employee during the Financial Year. This helps in reducing the employees having to claim a refund from the Department for any excess payment of taxes. The idea is to simplify the process at source from salary by the employer. The declaration includes furnishing the below information:

  1. Details of other Tax Deducted at Source- Section under which tax deducted at source, Name of deductor, Amount of tax deducted, Amount of income received/credited and other relevant information.
  2. Details of Tax Collected at Source – Section under which tax collected at source, TAN of collector, Amount of tax collected and other relevant information.
  3. Details of Loss under the Head ‘Income from House Property’ – Amount & Details.
  4. Verification and self-certification
  5. Minimal modifications to Form 16 and Form 24Q consequent to the introduction of Form 12BAA

 

Note/References:

More updates are anticipated. Customers will be updated if there are further amendments.

The position statement has been revised to give more updates on this legislative change. We encourage our customers to review the same and stay updated. The position statement can be found in My Oracle Support. Doc ID 2973834.1