Exemption U/s 10(26) of IT Act.

How to take exemption U/s 10(26) for resident of Ladakh while filing ITR?

As per income tax act u/s 10(26) STs of Ladakh region are exempted from Income Tax. But my question is that how to show his Salary or Business Income in ITR form under the respective income head or under the disclosure of exempted head.

If i show income under respective income head i.e. Salary/Business/OT. Than how this income get exempted and where to show in ITR Form.

If i show it under disclosure of exempted income head for reporting purpose. Then income which is auto populated /reflected under Salary/Business/OT head through 26AS, what to do these incomes.

If i file ITR 4 for business income i can not show business income zero and putting all income under disclosure of exempted income head. I have to show business income under ITR 4. If i show business income than where to show exemption.

Please suggest suitable suggestion. So that i can show Salary/Business/OT income and get exemption by deducting the total income - exemption.

Replies (3)
Quick Summary
This discussion clarifies how residents of Ladakh can claim income tax exemption under Section 10(26) of the Income Tax Act when filing their Income Tax Returns (ITR). It explains that while salary or business income is taxable, specific categories of individuals from Ladakh are exempt. The advice suggests using ITR-3 and declaring the income under the 'exempted income' head, rather than filing ITR-4. It also covers how to handle auto-populated income from sources like 26AS by editing the TDS details and declaring the income as exempted.

First of all you should not file ITR 4.

Declare the income under exempted income and edit the auto populated income in ITR3

 Edit TDS column, & declare the income is declared under exempted income.

Can i show  nil business income under Income from business & profession head in ITR 3 and show income under exempted head? Also same treatment in case of income from other sources.

Yes, that is the procedure.

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