HOW TO FILL SALARY BREAKUP IN ITR 1 | AY 2018 19 | TAX RETURN

HOW TO FILL SALARY BREAKUP IN  ITR 1  | AY 2018 19



Project - Make Knowledge Free

By - 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 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)

This will be point 1 (a) of form 16 i.e salary as section 17(1)



...........( say 10 lakhs )



Step - 2 Separate the basic salary from the gross chargeable figure



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 )



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



........(say 6 lakhs )



Step - 3 - Arriving at Non exempt allowances



This is gross salary (alone) MINUS salary as in step 2 MINUS the exempt allowances (say 20,000) as indicated in form 16



Therefore you shall compute i.e

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)



....10 lakhs - 6 lakhs -0.2 = 3.8 lakhs (value of non exempt allowances)

so figure for non exempt allowances is 3.8 lakhs .......





Step - 4 -Value of perquisites under section 17(2)



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



Step 5 - Profits in lieu of salary( section 17(3)



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.



Step 6 - Deduction under section 16



Check this from from Point 4 of form 16

Usually (a) Entertainment allowance and

(b)tax on employment etc (say 2500 Rs )



Step - 7 - You will therefore finally arrive at figure for chargeable income from salary which is presented for tax



(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 )



(Step - 7 - show the exempt allowances for salary like Exempt HRA, exempt conveyance etc etc in reporting schedule )





Take care so that the chargeable income from salary (point 6 of form 16 ) should match presented salary income in return





(Check attached pictures for my real live case )