Form 123: Tax Filing Deadline and Perquisite Reporting Requirements for Salaried Employees

Salaried employees in India must collect Form 123 from their employers by April 30, 2026. This form provides details of perquisites like meal card benefits and is crucial for filing Income Tax Returns for Assessment Year 2026-27.

Employers must issue this statement for employees earning over Rs 1.5 lakh annually. This ensures accurate reporting of all benefits received.

If your annual salary exceeds Rs 1.5 lakh, then your employer is required to provide you Form 12BA, detailing all the perks and their values that you have received. One of these perks is the Sodexo/Pluxxe meal cards.

For Tax Year 2026-2027, the meal card tax benefit is up to Rs 200 per meal under both the old and new tax regimes. For AY 2026-27, the tax benefit is up to Rs 50 per meal and it's for only those under the old tax regime.

The Income Tax Return (ITR) filing due date for senior citizens, students, the salaried and the pensioners is July 31, 2026 for AY 2026-27. For Tax Year 2026-27, the ITR filing due date is July 31, 2027.

Form 12BA is called Form 123 under Income Tax Rules, 2026. Chartered Accountant Suresh Surana says Form 12BA under the Income Tax Rules, 1962 is now renumbered as Form No. 123 under the Income-tax Rules 2026.

Form 123 is a statement issued by the Employer providing details of perquisites or profits in lieu of salary, to an Employee. Also Form No. 123 needs to be issued only in the case of an employee whose salary exceeds Rs 1.5 lakh per annum.

Though it is mandatory for the employer to issue Form No. 123 wherever applicable under Rule 204(2) of the Income Tax Rules, 2026, it is usually not required if the value of perquisites is nil.

According to Surana, your employer will provide you with Form 123, specifying the value of the perks, fringe benefits, amenities or profits in lieu of salary thereof provided during a financial year. This is in accordance with Section 392(5)(a) of the Income-tax Act, 2025, read with Rule 204(2) of the Income-tax Rules, 2026.

You can use the information in Form 123 to get a detailed break-up of monetary and non-monetary perquisites. It serves as a reference and perquisite valuation, for filing ITR.

For AY 2026-27, you can expect to get Form 12BA by April 30, 2026. For Tax Year 2026-27, you can expect the Form 123 to be given by April 30, 2027.

Surana says: "Employers are required to issue Form No. 123 to the employee by 30th of April of the following tax year."

What monetary and non-monetary benefits are shown in Form 12BA?

According to Surana, the following perquisites are to be included along with its valuation (net valuation, i.e. total valuation minus amount recovered from employee): Accommodation, Cars/Other automotive, Sweeper, gardener, watchman or personal attendant, Gas, electricity, water, Interest free or concessional loans, Holiday expenses, Free or concessional travel, Free meals, Free education, Gifts, vouchers, etc., Credit card expenses, Club expenses, Use of movable assets by employees, Transfer of assets to employees, Value of any other Benefit / amenity / service / privilege, Stock options allotted or transferred by employer being an eligible start-up referred to in section 140 of the Act, Stock options (non-qualified options) other than ESOP in point (p) above, Contribution by employer to fund and scheme taxable under Section 17(1)(h) of the Act, Annual accretion by way of interest, dividend etc. to the balance at the credit of fund and scheme referred to in Section 17(1)(i) of the Act, Other benefits or amenities.