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hanif

Category : ITR 1..,
Solved
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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S V

Category : Intimati..,
Solved
May 7, 2018 7:59 pm
  • Intimation Notice under 143(1)a
Hi Amlan,
In your video which seeks to explain how to fill in Schedule S of ITR-2, you have explained how to use Form-16 to fill in the various fields of the ITR-2 Schedule S. My question is - how do you tally the "income earned" figure in Form 26AS (of your employer) with the data provided in the Sc...
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Amlan Dutta
I cannot go into details and etc of all this ...basically concept here is that the chargeable income is alone subject to tax and that is arrived at deducting exempt allowances and section 16 deductions from salary .....whether it matches or not form 26 AS is not the issue ( one cannot and must not ...
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  • May 9, 2018
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Amlan Dutta
I will not go into A+ B etc ....basically you can disagree to the demand and mention that the income being offered for tax is the chargeable income and not the gross income etc .....the difference is on account of exempt allowances which you can specify in the reason box as i have already mentioned ...
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  • May 10, 2018
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Avadhut Nigudkar

Category : Communic..,
Solved
May 6, 2018 11:57 pm
  • Communication of proposed adjustment u/s 143(1)(a)(vi)
Dear Amlan,

I've received a notification email under section 143(1) a

I had filled ITR-4 for presumptive income for the business. According to it, my income is below 2.5 lakhs and so I am not supposed to pay any income tax.

But, as per the notice, it is saying the Tax refund that I am asking whic...
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Amlan Dutta
Your adjustment intimation depicts that you have not shown any business income and also not shown any income from other sources ( interest income) whereas your 26 as clearly shows it .....check your tax credit statement and your return filed and accordingly decide
  • May 7, 2018
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hanif

Category : Income t..,
Solved
May 6, 2018 10:37 pm
  • Income tax
Dear amlan,
how do we calculate salary structure in itr 1 ay 2018-19.my salary slip consists of basic salary+refreshment+
conveyance+cca+hra =gross salary.minus ppf+vpf+incometax+professional tax = net salary which i get a cheque.all these is taxable and the gross salary is mentioned in itr1 in sala...
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Amlan Dutta
Present year dictates that you not only put in chargeable income from salary but actually arrive at it unlike last year
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

here’s what you are needed t...
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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
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 7, 2018
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