Form 123: Statement of perquisites, fringe benefits, amenities and profits in lieu of salary
Source checked 21 October 2026 · Original author: Finin2min Editorial Desk
Purpose, person and period
Statement of perquisites, fringe benefits, amenities and profits in lieu of salary.
The employer provides Form 123 perquisite particulars, reconciling each prescribed value, employee recovery, taxable amount and salary-tax payment information from actual payroll records.
Period gate: This numbered form belongs to the Income-tax Rules, 2026, effective 1 April 2026. The predecessor 12BA is a concordance, not permission to change an earlier-year filing into a new-law form. For earlier periods, use the applicable 1961 Act form and saved procedure.
Controlling rule and source pages
Rule 204; . Physical PDF pp 716-718; printed Gazette pp 2248-2250.
Rule 204 — connected rule text
204. Furnishing of particulars for deduction of tax at source from income under head ―Salaries‖. — (1) The assessee may furnish the following particulars in Form No. 122 to t he person responsible for making the payment referred to in sub-section (1) of section 392, for the purpose of making deduction under the said sub -section:— (a) any income under the head ―Salaries‖ due or received by the assessee, from any other employer o r employers during the tax year; (b) any loss under the head ―Income from house property‖ for the same tax year; (c) any income chargeable under any head of income other than ―Salaries‖, not being a loss under any such head [other than the loss specified in clause (b)] for the same tax year; and (d) any tax deducted or collected at source under Chapter XIX-B of the Act for the same tax year. (2) The person responsible for paying any income chargeable under the head "Salaries" shall furnish to the person to whom such payment is made, a statement giving correct and complete particulars of perquisites or profits in lieu of salary and the value thereof in— [PDF PAGE 155] [भाग II—खण् ड 3(i)] भारतकाराजपत्र:असाधारण 1687 (a) the relevant columns provided in Form No. 130, if the amount of salary paid or payable to the employee for the tax year is not more than ₹ 150000; or (b) Form No. 123, if the amount of salary paid or payable to the employee for the tax year is more than ₹ 150000. (3) ―Salary‖ for the purposes of this rule shall have the same meaning as given in rule 15.
Completed field illustration
Fictional data, not for filing. A fictional employer values one electricity benefit and shows the employee recovery separately.
| Form field / block | Completed fictional entry |
|---|---|
| Part A: employer / PAN / TAN / address / contact | Example Employer Ltd / synthetic ZZZCE0000Z / MODEL-TAN-123 / 10 Model Road, Pune / payroll@example.invalid |
| Employee / designation / PAN / director flag | Priya Arun Sharma / analyst / synthetic ZZZPS0000Z / No, assumed ordinary employee |
| Row 11: salary income other than perquisites / TY | Rs 8,00,000, assumed separately computed after applicable salary deduction / 2026-27 |
| Part B row 4: gas/electricity/water benefit | Actual electricity bills paid by employer Rs 12,000; employee recovery Rs 2,000; taxable perquisite Rs 10,000 |
| Other perquisites / profits in lieu of salary | Nil / nil in this model |
| Row 21: total taxable perquisites | Rs 10,000 |
| Row 23: salary TDS / employer-paid tax / total | Nil / nil / nil, assuming resident new-regime ordinary total income Rs 8,10,000 and full eligible rebate; no other income |
| Declaration / signature | Model employer payroll officer / NOT SIGNED |
This illustrates the named fields, not every possible schedule. Use the complete official extract for additional applicable fields, annexures and verification. “Not signed” means no professional certification or authority action has occurred.
Reconcile the example
- 12,000 - 2,000 = 10,000 taxable perquisite.
- 8,00,000 + 10,000 = 8,10,000 assumed ordinary total income; nil tax is conditional on the stated regime and rebate facts.
Rule 15 controls the value of each benefit; employee recovery must not be ignored or deducted twice. This model covers one benefit, not the different car, accommodation, loan or stock-option valuation rules.
Prepare, furnish and retain
- Use the form identity and period above, then determine the person who prepares, issues or verifies it from Rule 204. An authority-issued order is not an applicant filing.
- Collect the records that support the actual fields in the example; keep any mandatory schedules and annexures specified in the complete source form.
- Reconcile dates, amounts, units and identifiers to the underlying records. Preserve the applicable rule version and any later correcting notification.
- Where the rule prescribes electronic furnishing, use the current official utility/schema and authorised verification. A local PDF does not produce a portal acknowledgement.
- Retain the submitted version, supporting schedules and actual acknowledgement or issued certificate/order, as applicable. This fictional model supplies none of those evidential outcomes.
Download the correct documents
Official Form 123 source extract Filled sample — fictional field illustration
The official extract preserves source pages; later amendments are supplied with affected forms. Read the April corrigendum where its printed-page corrections apply. The filled field illustration is an educational model and cannot be filed.
Primary sources
Questions readers ask
Does this sample prove approval, filing or a professional conclusion?
No. It completes the named fields using synthetic facts. It has no real signature, DSC, approval or acknowledgement.
Can I use the legacy form number for a current tax-year obligation?
Establish the governing period first. A predecessor number is a cross-reference; earlier-year procedures and current-year forms must be kept distinct.