While filing ITR-1 of a salaried employee for the FY 2025-26, the Option, “ANY OTHER EXEMPTION UNDER SECTION 10” to claim exempt income u/s 10(26) was found to be missing in both the formats of Old Tax and New Tax Regimes. In the previous years, this nature of exempt income was being claimed using the "Any Other" option under Schedule Exempt Income. This year, that option seems to be removed.
Under the changed circumstances, if the exempt income u/s 10(26) is claimed in the following manner this year, whether it will be valid :-
Suppose, the Gross Salary is Rs. 15,00,000/- and the exempt income is also Rs. 15,00,000/-.
(A) If under Salary as per section 17(1) of Part B1 Income from Salary in ITR-1, the Gross Salary is shown as "nil" (the Gross Salary of Rs. 15,00,000/- minus the exempt income of Rs. 15,00,000/-)
(B) And next, under Category, “Sums received by specified Category of Taxpayers” and Sub-Category, “10(26)- Any income as referred to in section 10(26)” of (C3) Exempt Income: For reporting purpose and Income on which no Tax is payable, the exempt income is shown as Rs. 15,00,000/-.
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