Go AD-Free with CAclubindia Pro and Daily Mobile Updates. Subscribe Now!

Can we claim exempt income u/s 10 in the itr2 - which is not shown in form 16.

SIDDHARTHAN.V (Service in BHEL/PSSR/Chennai) (31 Points)

12 July 2018

I am serving in CPSU. I am getting "Office Help Assistance @ 5% of my basic every month". But, while finalising the IT, it was missed by our Finance dept. to show this as a Exempt Income u/s 10 in the Form16 and Tax was also deducted from my salary including the above.

Whether, I can claim this amount as Exempt income under EI Schedule of ITR2 after reducing the Total income from salary shown in the Form 16. The Salary schedule to show Salary income asper Form16 minus this Exempt income u/s 10.

Is it correct.... Allowed to do so...... May some one kindly advice me.... Thanks in adavance....

Reply
Follow
Share

4 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (195730 Points)
Replied 13 July 2018

Will you please clarify, under which sub-section of section 10 of IT act, the income is exempt?

SIDDHARTHAN.V (Service in BHEL/PSSR/Chennai) (31 Points)
Replied 13 July 2018

Section10(14) - Office Help Assistance - who is engaged for the help of official duties...

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (195730 Points)
Replied 13 July 2018

Section 10(14) (i) any such special allowance or benefit, not being in the nature of a perquisite within the meaning of clause (2) of section 17, specifically granted to meet expenses wholly, necessarily and exclusively incurred in the performance of the duties of an office or employment of profit, as may be prescribed, to the extent to which such expenses are actually incurred for that purpose ..

For that exemption you have to submit the bills of your expenditure to your accounts.

Without the actual expenditure bills/proofs, it is taxable.

SHIRISH S S (Proprietor) (1080 Points)
Replied 13 July 2018

Most probably it comes under 10(14)(i) s.no 4 - helper allowance

"Any allowance by whatever name called granted to meet the expenditure incurred on a helper where such helper is engaged for performance of duties of an office or employment of profit"

Amount received or amount actually spent for the performance of duty which ever is less.