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PANKAJ SHUKLA

How to show HRA in ITR 1...
Dear Sir,
Where to show HRA in ITR 1 for ay 2018-19
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Amlan Dutta
Say, you get HRA 10,000 Rs per month of which 2000 is exempt and 8000 is taxable income. You will show 2000 Rs in exempt income reporting schedule For ...
Say,  you get HRA 10,000 Rs per month of which 2000 is exempt and 8000 is taxable income.                                                              You will show 2000 Rs in exempt income reporting schedule                                                                                        For non exempt i.e taxable portion you cannot show just one non exempt allowance separately ...           <br />    Process to do it is as follows - you will  take form 16 and salary slips  ...next figure out 12 month basic salary from payslips ...from form 16 , check gross (point 1a ) and exempt allowances ( Point 2 )                                          Now, subtract from gross salary basic and exempt allowances                                                                                      What you get is non exempt allowances which comprise taxable HRA(8000)   along with all other taxable /partially allowances ie DA, washing etc etc (Check attached pictures on what the process is like while filing of returns)Say,  you get HRA 10,000 Rs per month of which 2000 is exempt and 8000 is taxable income.                                                              You will show 2000 Rs in exempt income reporting schedule                                                                                        For non exempt i.e taxable portion you cannot show just one non exempt allowance separately ...           <br />    Process to do it is as follows - you will  take form 16 and salary slips  ...next figure out 12 month basic salary from payslips ...from form 16 , check gross (point 1a ) and exempt allowances ( Point 2 )                                          Now, subtract from gross salary basic and exempt allowances                                                                                      What you get is non exempt allowances which comprise taxable HRA(8000)   along with all other taxable /partially allowances ie DA, washing etc etc (Check attached pictures on what the process is like while filing of returns)Say,  you get HRA 10,000 Rs per month of which 2000 is exempt and 8000 is taxable income.                                                              You will show 2000 Rs in exempt income reporting schedule                                                                                        For non exempt i.e taxable portion you cannot show just one non exempt allowance separately ...           <br />    Process to do it is as follows - you will  take form 16 and salary slips  ...next figure out 12 month basic salary from payslips ...from form 16 , check gross (point 1a ) and exempt allowances ( Point 2 )                                          Now, subtract from gross salary basic and exempt allowances                                                                                      What you get is non exempt allowances which comprise taxable HRA(8000)   along with all other taxable /partially allowances ie DA, washing etc etc (Check attached pictures on what the process is like while filing of returns)Say,  you get HRA 10,000 Rs per month of which 2000 is exempt and 8000 is taxable income.                                                              You will show 2000 Rs in exempt income reporting schedule                                                                                        For non exempt i.e taxable portion you cannot show just one non exempt allowance separately ...           <br />    Process to do it is as follows - you will  take form 16 and salary slips  ...next figure out 12 month basic salary from payslips ...from form 16 , check gross (point 1a ) and exempt allowances ( Point 2 )                                          Now, subtract from gross salary basic and exempt allowances                                                                                      What you get is non exempt allowances which comprise taxable HRA(8000)   along with all other taxable /partially allowances ie DA, washing etc etc (Check attached pictures on what the process is like while filing of returns)
  • May 15, 2018
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hanif

Salary (ITR 1)...
Dear Amlan, i was given one full gross amount (given on occasion of Diwali - which is shown every year in gross salary-taxable) and i received salary arrears also ( salary was increased, therefore arrears were given). would like to ask if the both above amount comes in ALLOWANCE NOT EXEMPT column i...
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Amlan Dutta
I don't feel like replying multiple times to the same query I have told you that you should have a copy of of your form 16 to do this. ...
  • May 12, 2018
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hanif
many thanks mr amlan.....
  • May 12, 2018
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Dilip dwivedi

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...
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 )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 )
  • May 10, 2018
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hanif

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...
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 picturesAlready 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 picturesAlready 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 picturesAlready 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
  • May 10, 2018
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Dheeraj kumar

How to break salary structure in new itr from fy 2018 - 19
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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...
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 picturesPresent 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 picturesPresent 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 picturesPresent 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
  • May 10, 2018
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PANKAJ SHUKLA

How to show taxable hra in itr 1 for ay 2018-19
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Amlan Dutta
Under allowances not exempt .....see, HRA is a allowance and since you speak of the taxable HRA , so you will put it here ...infact all allowances that are taxable , you will club it all and out it under allowances not exempt........
Under allowances not exempt .....see, HRA is a allowance and since you speak of the taxable HRA , so you will put it here ...infact all allowances that are taxable , you will club it all and out it under allowances not exempt........
  • April 26, 2018
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NILESH NAMDEV BHOLE

Please make video tutorial for the assessment year 2018 19 ITR1
I have send the copy of form 16 on mail ID
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Amlan Dutta
Here is the tutorial for AY 2018 19 for salary income

Youtube Link - https://www.youtube.com/watch?v=S6OSkplYmO8
  • May 17, 2018
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hanif

ITR 1...
Dear Amlan, request you to please give us a video tutorial for itr-1 especially the salary column...with eg of form 16...will really appreciate... ay 2018-19
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Amlan Dutta
Mail me your form 16 at amlandutta007@gmail.com i will try and make a tutorial
  • April 25, 2018
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hanif
have not received form 16 yet.can u give a tutorial with dummy form 16...
  • April 25, 2018
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Varsha Rani

Sir, in my 26AS form, both income from salary & FD interest are summarized in same column due to same bank. Can I take only 194 A column income to show in income from other sources in ITR?
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Amlan Dutta
Attach the 26 AS screenshot please
Check entries pertaining to TDS section 192
Add all such entries for salary income

Check entries of credit on which TDS done under section 194 A
All such entries for interest income ( income under other sources)

Same approach for TDS credit as well

claim tax credit...
Attach the 26 AS screenshot please <br />Check entries pertaining to TDS section 192 <br />Add all such entries for salary income <br /><br />Check entries of credit on which TDS done under section 194 A <br />All such entries for interest income ( income under other sources)<br /><br /> Same approach for TDS credit as well <br /><br />claim tax credit on account of TDS separately salary TDS in schedule 1( ( TDS for salary under section 192) and interest TDS in schedule 2 (TDS done under section 194 A)........
  • April 19, 2018
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hanif

ITR 1...
dear amlan,
how r u? there is a confusion in filling a new column ie.allowance not exempt. i get a salary slip where in there is a break up of BASIC + CCA +,REFRESHMENT, + HRA, +CONVEYANCE = gross salary and minus PT+ VPF + IT = net salary. do i have to add cca/refreshment/hra/conveyance in the allo...
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Amlan Dutta
i can't go into detail of these , but the salary schedule in ITR 1 is nothing new and we have already seen the same salary schedule earlier in ITR 2 and other higher tax forms of last years where salary schedule was kept separately.....( people are used to using the ITR 1 for filing and so the pres...
i can't go into detail of these , but the salary schedule in ITR 1 is nothing new and we have already seen the same salary schedule earlier  in ITR 2 and other higher tax forms of last years where salary schedule was kept separately.....( people are used to using the ITR 1 for filing and so the present schedule  may have looked a bit different comparing earlier years returns)<br /><br /><br />you need to do this with your form 16 and not your salary slips ...once you get your form 16 ( check part b of it ), try and see the income chargeable under head salary(Point 6 )....this is what gets offered for tax after giving benefit of all exemptions etc ...<br /><br /><br />Say, gross salary( say 100 Rs) ,  <br />(ii)Exempt allowances  say 20 Rs ->(Exempt HRA(10) , exempt conveyance(10 Rs)).....................Not taxable<br />(iii)Non exempt allowances  say 10 Rs ->( Taxable HRA (10 Rs) )...................... ................Taxable<br />(iv)Perks, perquisite say 10 Rs ->  Profit in lieu of salary (bonus etc  0 rs  )   .................Taxable<br /><br />(v)Deductions say 10 Rs ->  ( Tax  on employment (10 Rs) , Entertainment (0 Rs))<br /><br />Then, salary under field 1 (salary excluding everything )= 100- (20+ 10+10)= 60<br /> Exempt allowances is = 20 rs,  Non Exempt allowances = 10 Rs <br /> Perks/perquisites = 10 rs  ..<br /><br />Deductions (10 Rs)<br />entertainment allowance =  0 Rs , Tax on employment = 10 rs ,<br /><br /> So, income chargeable under salary head shall be <br />= 60+10(non exempt allowances)+ 10(perks , if any)  -( deductions)<br />= 80- deductions <br />= 80 - 10 <br />= 70 Rs.<br />This shall be point 6 of your form 16 ( Not that bonus is totally taxable , other allowances may be partially exempt ( which is made clear in form 16 ) <br /><br />See this video - https://www.youtube.com/watch?v=r1syPCJ11KY<br />Read Description as well in the video (shows filling up of salary schedule in a similar live case )
  • April 18, 2018
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