Why do i get error that income in income schedule is less than90% of sal...

 Why do i get return error that my income is less than 90 % of salary reported in TDS 1 schedule? ?

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Why do i get return error that my income is less than 90 % of taxable income shown in TDS schedule ?

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Viewer asks
"
In the TDS schedule while claiming tax credit of deducted TDS on salary income , you are also required to fill salary income
.........Is this any different from the salary income that you fill in the income section under salary head !"
Also , i get error tha that my salary income is less than 90 % of taxable income shown in TDS schedule ?

Solution - By Amlan Dutta

You ask "In the TDS schedule while claiming tax credit of deducted TDS on salary income , you are also required to fill salary income
.........Is this any different from the salary income that you fill in the income section under salary head !"

Absolutely , since it is the TDS schedule you will realise that here it is the taxable salary amount on which employer applies TDS . So this is the salary income after removing the investments and deductions under chapter VIA Say i have salary income of 10 lakhs and have made contribution under 80 C to employee provident fund of 1 lakh rs , the employer will now deduct TDS on 9 lakh rs So taxable salary income for all his calculations of TDS is now 9 lakhs So, i have to show salary income in TDS schedule as 9 lakhs

And as far as showing income in income schedule is concerned there i will be showing 10 lakhs salary income because investments that are made of the salary income !So , we need to understand that the 10 lakhs is whole of my chareable salary income of which i invested 1 lakh to employee provident fund to benefit of eleigible deduction under chapter VIA

However my chargeable income therefore remains 10 lakhs and so while filling salary income in income schedule i fill up chargeable income of 10 lakhs !

So , you will see that under no circumstances will chargeable income be less than TDS schedule

To sum up, in TDS schedule i fill up the the taxable salary income ( because the employer deducts the TDS on taxable salary income and not chargeable salary income )and chargeable income in income schedule !

Therefore when figures get prefilled , the taxable income gets picked up in the return utility .If something else does , the employer has not filed his TDS return (24 q ) properly

Since taxable income is chargeable income minus deductions , there is no way that the chargeable income be lesser than the taxable income ....

Now that you understand this concept , you will feel more comfortable while filing the return!

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Query - 2

Here we all face a problem ... Gross salary is reflecting in TDS1 and we need to fill income under head salary after deductions of sec 10 exemptions.

In this case there is always a difference in income filled as salary and TDS1 entry. I have checked the issue even with my friends who have single form-16 and very easy entries.Just confirm us one thing ... Whether we can edit TDS1 salary because currently its gross salary without deducting sec 10 values and ultimately always a difference of 90 What should be filled in TDS1 ... Gross Salary or Salary after deductions of sec 10 ?

By - Anubhawa Shukla

You will have to edit it and put taxable income ...what is prefilled depends on what employer puts in his TDS return filed...for my case , it reflected properly taxable income because my employer was literate ...sadly in this country , where thousands don't even understand the difference between a return and acknowledgement , how can they do such things correctly ...the concept is so simple to uinderstand when you understand the fact that he does TDS on taxable income and not gross income ...infact gross income is absurd ...at best it should have prefilled chargeable income and that would be also wrong because finally salary income for TDS means that part of salary income on which TDS is applied ...now ask yourself whether it can ever be gross or chargeable income ...obviously no ? and therefore i made a tutorial because i know many dont get this finer aspect of filing ...

between us and the greater audience , this is such a fine point that even the assessing officer will not hold you wrong for putting either taxable income /chargeable income and this has no effect on tax liability ...