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Dear Sir, Greetings... Thanks for educating us through your YouTube channel. I'm a salaried person and could you please explain which ITR I should file for AY 2018-19 with following information. My actual income in FY2017-18 was almost 43L but I had received of 7.5L as arrears from FY 2016-17. Therefore, Form 26AS shows 50.5L as income. In FY 2016-17, my income was 35L.
Under this circumstances, which ITR I should file? If ITR-1, where to put previous year's income
Solution - By Amlan Dutta
You should understand that the form 16 already comprises of all components i.e arrears etc
First figure out whether the arrears that you have received has been considered in form 16 or not
If yes, observe steps in case 1 else observe steps of case 2 ,
(i)Case - 1 Arrears received and considered in form 16
First, get a copy of form 16 (Part B )and 12 month pay slips (you are recommended to watch my salary breakup using form 16 )
Next, note down from form 16 Point 1(a) i.e gross salary ...This portion of gross salary does not comprise of perquisites and profits .
Basically this gross salary comprises only of exempt , non exempt (containing arrears non exempt portion) and basic salary
1) So, first figure out basic salary from the 12 month payslip Add to this the salary arrears and put combined value under salary
2.) Next check the salary exempt allowances from form 16
3.) Subtract from gross the salary exempt allowances and salary basic to arrive at non exempt allowance ...(THIS FIGURE WOULD CONTAIN THE ARREARS NON EXEMPT PORTION )
4.) You can put in figures of perquisite and profits from form 16
5.) Next offer deduction under section 16 ...
You will thereafter arrive at chargeable income = (Basic salary + non exempt allowances ( including arrears) + perquisites + profits - Deductions )
If arrears has not been considered in form 16 , observe steps as enlisted in case 2 below, (ii) Case 2 - Arrears received but not shown in form 16
Put basic arrears in basic salary Put other arrears component in non exempt allowances
