Allowances not exempted in ITR 1

suresh kumar garg (accountant) (109 Points)

27 June 2018

Sir, please clear that DA is a part of basic salary or it shall come under " Allwances not exempted".

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160332 Points)
Replied 27 June 2018

The Dearness Allowance is a cost of living adjustment allowance paid to Government employees, Public sector employees (PSU)and pensioners.

Dearness Allowance is calculated as a percentage of employee's basic salary to mitigate the impact of inflation.

For IT purpose, it is taxable along with basic salary.....

J S BHAVSAR (CONSULTING) (1288 Points)
Replied 07 August 2018

So, will DA be added to Basic Salary and entered in Line 1 of ITR1?

Or should DA be added in Line 2 (Allowances not exempt)?

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