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Deductions u/s 10 in ITR1 AY 2018-19

Sewak (Service) (10 Points)

27 April 2018

Sir,

Beginning AY 2018-19, Salaried Tax Payers need to show a breakup of their salary details in the ITR1. Now in these columns in the new ITR, their is a column called "DEDUCTIONS U/S 16". Entertainment Allowance and other Professional Tax fall under Section 16.

Now, My employer is providing me Conveyance Allowance which is fully exempted under Section 10 of IT Act. HOW WILL I SHOW SECTION 10 DEDUCTIONS in the new ITR1 for AY 2018-19. Do I need to fill it in the above mentioned(secion 16) column?

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11 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (161047 Points)
Replied 27 April 2018

"My employer is providing me Conveyance Allowance which is fully exempted under Section 10 of IT Act. HOW WILL I SHOW SECTION 10 DEDUCTIONS in the new ITR1 for AY 2018-19."

In First row itself.......

Because Row no. B1(i) is for SALARY ...(Excluding all allowances, Perquisites & profit in lieu of salary)..........

Which means you have to fill in the data of taxable salary excluding the allowances.. as per form 16)

1 Like

Sewak (Service) (10 Points)
Replied 27 April 2018

Thanks for the reply sir,

So, that means I have to fill in the Salary (Gross Salary - Section 10 allowances) in the column B1(i)?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (161047 Points)
Replied 27 April 2018

Yes, taxable salary.

Sanjeev (Service) (26 Points)
Replied 08 June 2018

1. However if you use the Java utility the Gross Salary is automatically captured from 26 AS

2. A.Y 2017-18 notices were issued for deducting the exempt incomes as mentioned above.

Mayank Goyal (Income Tax Consultant) (307 Points)
Replied 02 July 2018

One may fill in the Salary (Gross Salary - Section 10 allowances) in the column B1(i) and alongwith, to avoid any notices from the Dept., like it happened in AY 2017-18, also fill in the allowance under section 10 as exempt income under point 27 ot the ITR, which is just for reporting purposes. it will give a clear picture.

PS: Do correct me if I am wrong anywhere.

Manish Kumar (7 Points)
Replied 08 July 2018

Sir, where i have to mentioned HRA and Convaayance amount of form 16 to get rebate on both.

If we fill data after HRA and CONVAYANCE rebate in Head Salary as per form 16, its showing error- Since the amount disclosed in income chargeable under the Head Salaries is less than 90% Salary reported in TDS1, please ensure to fill details in Others in Exempt Income

1 Like

J S BHAVSAR (CONSULTING) (1288 Points)
Replied 09 July 2018

Where to mention Rs 19,200 Conveyance Allowance in Schedule SALARY?

Nowadays, someone has come in CPC Bengaluru and they are trying to match the Gross Total Income from 26AS with Gross Total taxable income on ITR forms. So all return filers who were subtracting Rs 19200 and Rs 2500 from GTI and using Income Under the Head Salaries, those returns are now in 143(1)(a) because the CPC officer feels there is a mismatch.

CPC officer it seems does not know that certain allowances that are exempt in Form 16 hence not computed in Gross Taxable salary. This happened from AY 17-18 only.

Bhavnesh Dhirajlal Parikh (Finance Exactitude) (106 Points)
Replied 19 July 2018

Dear Sir

below allowance amount show in which colum in new ITR-1 (Salary) . how can show it any example

10(13A) read with Rule 2A	House rent allowance	Least of the following is exempt: a) Actual HRA Received b) 40% of Salary (50%, if house situated in Mumbai, Calcutta, Delhi or Chennai) c) Rent paid minus 10% of salary * Salary = Basic + DA (if part of retirement benefit) + Turnover based Commission Note: i. Fully taxable, if HRA is received by an employee who is living in his own house or if he does not pay any rent ii. It is mandatory for employee to report PAN of the landlord to the employer if rent paid is more than Rs. 1,00,000 [Circular No. 08 /2013 dated 10-10-2013].
5.	10(14)	Children education allowance	Up to Rs. 100 per month per child up to a maximum of 2 children is exempt
6.	10(14)	Hostel expenditure allowance	Up to Rs. 300 per month per child up to a maximum of 2 children is exempt
7.	10(14)	Transport allowance granted to an employee to meet expenditure on commuting between place of residence and place of duty	Up to Rs. 1600 per month (Rs. 3200 per month for blind and handicapped employees) is exempt
8.	Sec. 10(14)	Allowance granted to an employee working in any transport business to meet his personal expenditure during his duty performed in the course of running of such transport from one place to another place provided employee is not in receipt of daily allowance.	Amount of exemption shall be lower of following: a) 70% of such allowance; or b) Rs. 10,000 per month.
9.	10(14)	Conveyance allowance granted to meet the expenditure on conveyance in performance of duties of an office	Exempt to the extent of expenditure incurred for official purposes
10.	10(14)	Travelling allowance to meet the cost of travel on tour or on transfer	Exempt to the extent of expenditure incurred for official purposes
11.	10(14)	Daily allowance to meet the ordinary daily charges incurred by an employee on account of absence from his normal place of duty	Exempt to the extent of expenditure incurred for official purposes
12.	10(14)	Helper/Assistant allowance	Exempt to the extent of expenditure incurred for official purposes
13.	10(14)	Research allowance granted for encouraging the academic research and other professional pursuits	Exempt to the extent of expenditure incurred for official purposes
14.	10(14)	Uniform allowance	Exempt to the extent of expenditure incurred for official purposes
15.	10(7)	Any allowance or perquisite paid or allowed by Government to its employees (an Indian citizen) posted outside India	Fully Exempt
16.	-	Allowances to Judges of High Court/Supreme Court (Subject to certain conditions)	Fully Exempt.
17.	10(45)	Following allowances and perquisites given to serving Chairman/Member of UPSC is exempt from tax: a) Value of rent free official residence b) Value of conveyance facilities including transport allowance c) Sumptuary allowance d) Leave travel concession	Fully Exempt
18.	-	Allowances paid by the UNO to its employees	Fully Exempt
19.	10(45)	Allowances to Retired Chairman/Members of UPSC (Subject to certain conditions)	Exempt subject to maximum of Rs. 14,000 per month for defraying the services of an orderly and for meeting expenses incurred towards secretarial assistant on contract basis.
20.	Sec. 10(14) read with Rule 2BB	Special compensatory Allowance (Hilly Areas) (Subject to certain conditions and locations)	Amount exempt from tax varies from Rs. 300 to Rs. 7,000 per month.
21.	Sec. 10(14) read with Rule 2BB	Border area, Remote Locality or Disturbed Area or Difficult Area Allowance (Subject to certain conditions and locations)	Amount exempt from tax varies from Rs. 200 to Rs. 1,300 per month.
22.	Sec. 10(14) read with Rule 2BB	Tribal area allowance in (a) Madhya Pradesh (b) Tamil Nadu (c) Uttar Pradesh (d) Karnataka (e) Tripura (f) Assam (g) West Bengal (h) Bihar (i) Orissa	Up to Rs. 200 per month is exempt
23.	Sec. 10(14) read with Rule 2BB	Compensatory Field Area Allowance. If this exemption is taken, employee cannot claim any exemption in respect of border area allowance (Subject to certain conditions and locations)	Up to Rs. 2,600 per month is exempt
24.	Sec. 10(14) read with Rule 2BB	Compensatory Modified Area Allowance. If this exemption is taken, employee cannot claim any exemption in respect of border area allowance (Subject to certain conditions and locations)	Up to Rs. 1,000 per month is exempt
25.	Sec. 10(14) read with Rule 2BB	Counter Insurgency Allowance granted to members of Armed Forces operating in areas away from their permanent locations. If this exemption is taken, employee cannot claim any exemption in respect of border area allowance (Subject to certain conditions and locations)	Up to Rs. 3,900 per month is exempt
26.	Sec. 10(14) read with Rule 2BB	Underground Allowance to employees working in uncongenial, unnatural climate in underground mines	Up to Rs. 800 per month is exempt
27.	Sec. 10(14) read with Rule 2BB	High Altitude Allowance granted to armed forces operating in high altitude areas (Subject to certain conditions and locations)	a) Up to Rs. 1,060 per month (for altitude of 9,000 to 15,000 feet) is exempt b) Up to Rs. 1,600 per month (for altitude above 15,000 feet) is exempt
28.	Sec. 10(14) read with Rule 2BB	Highly active field area allowance granted to members of armed forces (Subject to certain conditions and locations)	Up to Rs. 4,200 per month is exempt
29.	Sec. 10(14) read with Rule 2BB	Island Duty Allowance granted to members of armed forces in Andaman and Nicobar and Lakshadweep group of Island (Subject to certain conditions and locations)	Up to Rs. 3,250 per month is exempt