Tax planning
Perquisite valuation and the employer's statement, Form 123 (earlier Form 12BA)
What this means, checked by a CA
Benefits your employer gives in kind, like a car, a flat, a cheap loan or shares, are taxed as salary at values set by the rules. We value each benefit under the 2026 rules, check the employer's Form 123 and Form 130, and show you how to cut the tax legally.
₹2,999
Yearly, and when a benefit changes, + 18% GST
- Delivered in 3 working days after documents
- Due: Valuation before the monthly TDS run; Form 123 issued by 30 April after the tax year
How we do it: IDFD
Every case runs through the same four steps: Information, Discussion, Forms, Deliverables. You see each one ticked as it happens.
InformationWhat we need from you · 8 items
Car ownership, engine size, use
Picks the monthly car value
Who pays fuel and driver
Changes the car value
Housing: owned or leased, rentOptional
Accommodation perquisite
Employer loans and purposeOptional
Medical loans up to ₹2,00,000 excluded
Meal cards, gifts, vouchersOptional
Limits ₹200 a meal, ₹15,000 yearly
ESOP exercise date, FMV, priceOptional
Perquisite is FMV minus price paid
Employer PF, NPS, superannuation amountsOptional
Excess over ₹7,50,000 taxed
Amounts recovered from employee
Form 123 shows net value
DiscussionWhat we discuss · 5 items
Is the car used only for work?
Personal use triggers the monthly value
Old or new regime?
Perquisites taxed in both; allowances differ
Can the benefit be restructured?
Lease vs allowance vs reimbursement
Does the employer pay the perquisite tax?
Sec 392(2) changes the cost
Is the ESOP from an eligible start-up?
TDS may be deferred under Sec 392(3)
FormsForms we file · 5 items
List every benefit given in the tax year with dates and costs
Where: Payroll, fixed asset and expense records. Due: Before the monthly TDS run
Value each benefit under Rule 15
Car: monthly value by engine size and who bears running cost, plus ₹3,000 for a chauffeur; ESOP: FMV on exercise minus amount paid; loans: interest benefit above the threshold; meals and gifts: amount above the limits; all net of recovery
Where: Our valuation sheet. Due: Monthly or when the benefit starts
Add perquisite value to salary for monthly TDS
Tax at the average rate on estimated salary including perquisites (Sec 392(1))
Where: Payroll. Due: Each month
Issue Form 123 listing each perquisite (net value) with Form 130
Where: Employer to employee. Due: By 30 April after the tax year
Report perquisites in the salary schedule of the ITR to match Form 123 and Form 130
Where: https://www.incometax.gov.in. Due: With the ITR
DeliverablesWhat you get · 3 items
Perquisite valuation sheet
When: 3 working days
Checked Form 123 and Form 130
When: By 30 April or 15 June
Restructuring note
When: With the sheet
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