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Dilip dwivedi

Category : How to f..,
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May 10, 2018 10:37 am
  • How to fill Salary breakup in ITR 1
Dear amlan sir
I want to fill up itr 1for AY 2018-19 but some problem are create in salary details.options.. My salary have (-basic salary+d.a+hra+bonus)and no other allowances
Plz help as soon as possible so that I can fill itr..my problems are
1- what amount of salary's (basic,da,hra,bonus)are e...
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Amlan Dutta
You should have your pay slip and a copy of your form 16 ...now you have gross salary mentioned in form 16 ( inclusive of salary plus all non exempt allowances ...so clearly you only need to remove salary portion to get the non exempt allowances portion ...

Step - 1 - Identify the Gross salary

I.e th...
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You should have your pay slip and a copy of your form 16 ...now you have gross salary mentioned in form 16 ( inclusive of salary plus all non exempt allowances ...so clearly you only need to remove salary portion to get the non exempt allowances portion ...<br /><br />Step - 1 - Identify the Gross salary <br /><br />I.e this salary is salary+ all non exempt allowances ( da, non exempt HRA , washing etc etc whatever applies since this may vary from person to person)<br />This will be point 1 (a) of form 16 i.e salary as section 17(1) <br /><br />...........( say 10 lakhs )<br /><br />Step - 2 Separate the basic salary from the gross chargeable figure <br /><br />Now our aim is to remove salary from the non exempt allowances , here you shall need your 12 month payslips ( just consider the basic portion only ) <br /><br />Ignore everything else i.e DA & every other allowance i.e washing HRA etc etc other exempt and non exempt allowances ) ...Put this under salary <br /><br />........(say 6 lakhs )<br /><br />Step - 3 - Arriving at Non exempt allowances <br /><br />This is gross salary (alone) MINUS salary as in step 2 MINUS the exempt allowances (say 20,000) as indicated in form 16 <br /><br />Therefore you shall compute i.e <br />i.e Gross salary(Point 1(a) of form 16) MINUS salary as calculated in step (2) minus i.e sum total of exempt allowances under section 10 (Point 2 of form 16)<br /><br />....10 lakhs - 6 lakhs -0.2 = 3.8 lakhs (value of non exempt allowances)<br />so figure for non exempt allowances is 3.8 lakhs .......<br /><br /><br />Step - 4 -Value of perquisites under section 17(2)<br /><br />Check figures for perks , perquisites , etc from point 1(b) of form 16 (section 17(2))..If not present or indicated as nil , you will put 0<br /><br />Step 5 - Profits in lieu of salary( section 17(3)<br /><br />Check figures for perks , perquisites , etc from point 1(c) of form 16 (section 17(3))..If not present or indicated as nil , you will put 0.<br /><br />Step 6 - Deduction under section 16<br /><br />Check this from from Point 4 of form 16 <br />Usually (a) Entertainment allowance and <br />(b)tax on employment etc (say 2500 Rs )<br /><br />Step - 7 - You will therefore finally arrive at figure for chargeable income from salary which is presented for tax <br /><br />(Note - If it doesn't match form 26 as , it is okay since 26 as depends on TDS filing and usually for companies show the gross amount credited )<br /><br />(Step - 7 - show the exempt allowances for salary like Exempt HRA, exempt conveyance etc etc in reporting schedule )<br /><br /><br />Take care so that the chargeable income from salary (point 6 of form 16 ) should match presented salary income in return<br /><br /><br />(Check attached pictures for my real live case )
You should have your pay slip and a copy of your form 16 ...now you have gross salary mentioned in form 16 ( inclusive of salary plus all non exempt allowances ...so clearly you only need to remove salary portion to get the non exempt allowances portion ...<br /><br />Step - 1 - Identify the Gross salary <br /><br />I.e this salary is salary+ all non exempt allowances ( da, non exempt HRA , washing etc etc whatever applies since this may vary from person to person)<br />This will be point 1 (a) of form 16 i.e salary as section 17(1) <br /><br />...........( say 10 lakhs )<br /><br />Step - 2 Separate the basic salary from the gross chargeable figure <br /><br />Now our aim is to remove salary from the non exempt allowances , here you shall need your 12 month payslips ( just consider the basic portion only ) <br /><br />Ignore everything else i.e DA & every other allowance i.e washing HRA etc etc other exempt and non exempt allowances ) ...Put this under salary <br /><br />........(say 6 lakhs )<br /><br />Step - 3 - Arriving at Non exempt allowances <br /><br />This is gross salary (alone) MINUS salary as in step 2 MINUS the exempt allowances (say 20,000) as indicated in form 16 <br /><br />Therefore you shall compute i.e <br />i.e Gross salary(Point 1(a) of form 16) MINUS salary as calculated in step (2) minus i.e sum total of exempt allowances under section 10 (Point 2 of form 16)<br /><br />....10 lakhs - 6 lakhs -0.2 = 3.8 lakhs (value of non exempt allowances)<br />so figure for non exempt allowances is 3.8 lakhs .......<br /><br /><br />Step - 4 -Value of perquisites under section 17(2)<br /><br />Check figures for perks , perquisites , etc from point 1(b) of form 16 (section 17(2))..If not present or indicated as nil , you will put 0<br /><br />Step 5 - Profits in lieu of salary( section 17(3)<br /><br />Check figures for perks , perquisites , etc from point 1(c) of form 16 (section 17(3))..If not present or indicated as nil , you will put 0.<br /><br />Step 6 - Deduction under section 16<br /><br />Check this from from Point 4 of form 16 <br />Usually (a) Entertainment allowance and <br />(b)tax on employment etc (say 2500 Rs )<br /><br />Step - 7 - You will therefore finally arrive at figure for chargeable income from salary which is presented for tax <br /><br />(Note - If it doesn't match form 26 as , it is okay since 26 as depends on TDS filing and usually for companies show the gross amount credited )<br /><br />(Step - 7 - show the exempt allowances for salary like Exempt HRA, exempt conveyance etc etc in reporting schedule )<br /><br /><br />Take care so that the chargeable income from salary (point 6 of form 16 ) should match presented salary income in return<br /><br /><br />(Check attached pictures for my real live case ) +3
  • May 10, 2018
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Jitendra B
Dear Amlan, This excel if you can send or attach, it will be helpful to use as a template.
  • September 5, 2018
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SHIVAM KAMLESH SAHAY

Category : Request..,
Solved
May 9, 2018 9:00 pm
  • Request
Good evening Sir, I am sorry if I am bothering you. Please can you tell me when will you launch your book Sir. thank you.
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Amlan Dutta
It may take some time on account of the recent changes in the act and also considering the fact that a task force is being set up to redraft the income taxes....
  • May 10, 2018
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Biswajit Sarkar

Category : Income t..,
Solved
May 7, 2018 11:28 pm
  • Income tax
Hi Amlan,
Thanks a lot for such a great initiative.
Learn lots of thing from your YouTube videos.
Recently I received a mail from income tax department regarding tax filing.

As per mail "it was found that it contains arithmetical errors/ incorrect claims/ inconsistencies with respect to Audit Report /Fo...
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Amlan Dutta
Check tutorial for adjustment intimation notice under section 143(1)(a)...if you don't agree , then head towards the eassessment and reply accordingly ....form 26 as is not the correct picture of chargeable income , form 16 alone can help one to determine chargeable income but you should be able to ...
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  • May 9, 2018
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hanif

Category : ITR 1..,
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May 7, 2018 9:38 pm
  • ITR 1
dear amlan, would like to ask you that i show my gross salary as taxable.also i get 3 cheques yearly ie.medical,good service allowance and holiday travel which is also shown as taxable income in all in the salary income.besides that i dont get any allowance or perquisites,neither i get in leiu of sa...
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Amlan Dutta
Already answered this multiple times, do it from form 16 and not salary slip ...other than basic component , rest all shall fall under non exempt allowances
Present year dictates that you not only put in chargeable incom...
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Already answered this multiple times, do it from form 16 and not salary slip ...other than basic component , rest all shall fall under non exempt allowances <br />Present year dictates that you not only put in chargeable income from salary but actually arrive at it unlike last year <br />You are required to put in salary and also separately the Non -exempt allowances which are actually not forming a part of form 16 , so how do you do it <br /><br />here’s what you are needed to do , <br />You should have your pay slip’s and a copy of your form 16 ...now you have gross salary mentioned in form 16 ( inclusive of salary plus all non exempt allowances ...so clearly you only need to remove salary portion to get the non exempt allowances portion ...<br /><br />Step - 1 - Identify the Gross salary <br />This will be point 1 (a) of form 16 i.e salary as section 17(1) <br />I.e this salary is salary+ all non exempt allowances ( da, non exempt HRA , washing etc etc whatever applies since this may vary from person to person)<br /><br />...........( say 10 lakhs )<br /><br />Step - 2 Separate the basic salary from the gross chargeable figure <br /><br />Now our aim is to remove salary from the non exempt allowances , here you shall need your 12 month payslips ( just consider the basic portion only ) ..i am assuming that it doesn’t change , however the june basic and onwards may have a slight increment (you can accordingly adjust )<br /><br />Ignore everything else i.e DA & every other allowance i.e washing HRA etc etc other exempt and non exempt allowances ) ...Put this under salary <br /><br />........(say 6 lakhs )<br /><br />Step - 3 - ******Arriving at Non exempt allowances *******<br /><br />This is gross salary (alone) MINUS salary as in step 2 MINUS the exempt allowances (say 20,000) as indicated in form 16 <br /><br />Therefore you shall compute i.e <br />i.e Gross salary(Point 1(a) of form 16) MINUS salary as calculated in step (2) minus i.e sum total of exempt allowances under section 10 (Point 2 of form 16)<br /><br />....10 lakhs - 6 lakhs -0.2 = 3.8 lakhs (value of non exempt allowances)<br />so figure for non exempt allowances is 3.8 lakhs .......<br /><br /><br />Step - 4 -Value of perquisites under section 17(2)<br /><br />Check figures for perks , perquisites , etc from point 1(b) of form 16 (section 17(2))..If not present or indicated as nil , you will put 0<br /><br />Step 5 - Profits in lieu of salary( section 17(3)<br /><br />Check figures for perks , perquisites , etc from point 1(c) of form 16 (section 17(3))..If not present or indicated as nil , you will put 0.<br /><br />Step 6 - Deduction under section 16<br /><br />Check this from Point 4 of form 16 <br />Usually (a) Entertainment allowance and <br />(b)tax on employment etc (say 2500 Rs )<br /><br />Step - 7 - You will therefore finally arrive at figure for chargeable income from salary which is presented for tax <br /><br />Chargeable income = salary + non exempt allowances + perquisites + profits in lieu of salary minus ( deductions )<br /><br />Take care so that the chargeable income from salary (point 6 of form 16 ) should match presented salary income in return<br />Just cross check this part twice.<br /><br />(Note - If it doesn't match form 26 as(total amount paid credited ) , it is okay since 26 as depends on TDS filing and usually for companies show the gross amount credited )<br />If you get a adjustment notice under 143(1)(a)(iv) just head towards e assessment and explain that the difference is on account of exempt allowances depicted in the reporting schedule under section 10(14) ( if it is the case for conveyance)<br /><br />(Step - 8 - show the exempt allowances for salary like Exempt HRA, exempt conveyance etc etc in reporting schedule )<br /><br />MY own case shown through attached pictures
Already answered this multiple times, do it from form 16 and not salary slip ...other than basic component , rest all shall fall under non exempt allowances <br />Present year dictates that you not only put in chargeable income from salary but actually arrive at it unlike last year <br />You are required to put in salary and also separately the Non -exempt allowances which are actually not forming a part of form 16 , so how do you do it <br /><br />here’s what you are needed to do , <br />You should have your pay slip’s and a copy of your form 16 ...now you have gross salary mentioned in form 16 ( inclusive of salary plus all non exempt allowances ...so clearly you only need to remove salary portion to get the non exempt allowances portion ...<br /><br />Step - 1 - Identify the Gross salary <br />This will be point 1 (a) of form 16 i.e salary as section 17(1) <br />I.e this salary is salary+ all non exempt allowances ( da, non exempt HRA , washing etc etc whatever applies since this may vary from person to person)<br /><br />...........( say 10 lakhs )<br /><br />Step - 2 Separate the basic salary from the gross chargeable figure <br /><br />Now our aim is to remove salary from the non exempt allowances , here you shall need your 12 month payslips ( just consider the basic portion only ) ..i am assuming that it doesn’t change , however the june basic and onwards may have a slight increment (you can accordingly adjust )<br /><br />Ignore everything else i.e DA & every other allowance i.e washing HRA etc etc other exempt and non exempt allowances ) ...Put this under salary <br /><br />........(say 6 lakhs )<br /><br />Step - 3 - ******Arriving at Non exempt allowances *******<br /><br />This is gross salary (alone) MINUS salary as in step 2 MINUS the exempt allowances (say 20,000) as indicated in form 16 <br /><br />Therefore you shall compute i.e <br />i.e Gross salary(Point 1(a) of form 16) MINUS salary as calculated in step (2) minus i.e sum total of exempt allowances under section 10 (Point 2 of form 16)<br /><br />....10 lakhs - 6 lakhs -0.2 = 3.8 lakhs (value of non exempt allowances)<br />so figure for non exempt allowances is 3.8 lakhs .......<br /><br /><br />Step - 4 -Value of perquisites under section 17(2)<br /><br />Check figures for perks , perquisites , etc from point 1(b) of form 16 (section 17(2))..If not present or indicated as nil , you will put 0<br /><br />Step 5 - Profits in lieu of salary( section 17(3)<br /><br />Check figures for perks , perquisites , etc from point 1(c) of form 16 (section 17(3))..If not present or indicated as nil , you will put 0.<br /><br />Step 6 - Deduction under section 16<br /><br />Check this from Point 4 of form 16 <br />Usually (a) Entertainment allowance and <br />(b)tax on employment etc (say 2500 Rs )<br /><br />Step - 7 - You will therefore finally arrive at figure for chargeable income from salary which is presented for tax <br /><br />Chargeable income = salary + non exempt allowances + perquisites + profits in lieu of salary minus ( deductions )<br /><br />Take care so that the chargeable income from salary (point 6 of form 16 ) should match presented salary income in return<br />Just cross check this part twice.<br /><br />(Note - If it doesn't match form 26 as(total amount paid credited ) , it is okay since 26 as depends on TDS filing and usually for companies show the gross amount credited )<br />If you get a adjustment notice under 143(1)(a)(iv) just head towards e assessment and explain that the difference is on account of exempt allowances depicted in the reporting schedule under section 10(14) ( if it is the case for conveyance)<br /><br />(Step - 8 - show the exempt allowances for salary like Exempt HRA, exempt conveyance etc etc in reporting schedule )<br /><br />MY own case shown through attached pictures +3
  • May 10, 2018
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