Categories
Normal Grid Pagination Scroll
Aamir

Category : How to f..,
Solved
June 5, 2018 5:12 am
Is salary breakup necessary to be precise and accurate.
My employer has not given these details. Neither exempt nor non exempt allowances... can i enter just approx details while maintaining total taxable salary and total tds.
  • Hide Placeholder
  • Hide Discussion
Amlan Dutta
Well , its better that you show breakup of salary appearing in 26 as atleast ...26 as has total amount paid/credited i.e gross salary (say 100 Rs for example) ....So , you have to show chargeable income from salary(say 80 Rs ) plus the exemptions and deductions (Total 20 Rs )that make for the gros...
View More
  • June 5, 2018
  • LikeLike
  • Select as Answer
hanif

Category : How to f..,
Solved
May 30, 2018 7:30 pm
i know this is a silly question which is already been replied by you.my query is if the form 16 does not show the allowance not exempt amount and shows only the gross amount, do we have to calculate the allowance not exempt amount from our given salary slips as shown in your tutorial. or do we have ...
View More
  • Hide Placeholder
  • Hide Discussion
Amlan Dutta
Nobody's form 16 shows non exempt allowance .......

The simple equation is -

basic salary + non exempt allowances + profits + perquisites = gross salary
...
View More
  • May 30, 2018
  • LikeLike
  • 1 person
  • Select as Answer
hanif
dear amlan,,, you have cleared all my doubts...many many thanks to you.
  • May 31, 2018
  • LikeLike
  • 1 person
  • Select as Answer
Dilip dwivedi

Category : How to f..,
Solved
May 10, 2018 10:37 am
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...
View More
  • Hide Placeholder
  • Hide Discussion
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...
View More
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
  • LikeLike
  • 2 people
  • Select as Answer
Jitendra B
Dear Amlan, This excel if you can send or attach, it will be helpful to use as a template.
  • September 5, 2018
  • LikeLike
  • Select as Answer