Cash salary is only part of compensation. Perquisites are non-cash or subsidised benefits valued under Income-tax Rules and added to salary. Form 12BA lists them transparently. If taxable income jumps without a raise, perquisites are the first place to look.
- Perquisites increase salary income after prescribed valuations, not optional perks ignored by tax.
- Form 12BA pairs with Form 16 Part B; read them together.
- ESOP/RSU values often enter as perquisites at exercise or allotment.
- Challenge valuations through HR and CA if facts are wrong, not if you simply dislike tax.
Rules value accommodation, car, driver, domestic help, cheap loans, and similar benefits in rupees, then add to salary.
Some small benefits may be exempt under specific clauses; employers usually code that in payroll. Your payslip “Other benefits” line may map to 12BA detail.
If January payslip YTD and Form 16 gross diverge, request the detailed 12BA PDF early. Look for one-time valuations like relocation, insurance, or club deposit.
Catching errors in June beats fighting Form 16 in August with payroll already locked.
Equity compensation often triggers a taxable perquisite at allotment/exercise and a separate capital gain at sale.
Do not net them mentally into one line item; your ITR schedules won’t.
SalTax writes for salaried taxpayers and professionals in India who want clear explanations, not jargon. Our guides reflect how tax compliance works in practice, including payroll, Form 16, AIS, and filing, but they are educational only. They are not tax, legal, or investment advice. Rules, limits, and forms change with each Finance Act and assessment year. Always confirm the current year on the official Income Tax Department website (incometax.gov.in) and use a Chartered Accountant or qualified tax adviser for your own return, notices, or planning.