ITR-2 salary breakup updation

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0 Points Posted on 02 July 2026

I am filing ITR-2 and need to claim an exemption under Section 10(14)(i) (Telephone Allowance) as reported in my Form 16.

Form 16 contains the following details: Below is an example

Salary Details

  • Salary as per Section 17(1): ₹75,00,000
  • Value of perquisites under Section 17(2): ₹22,000
  • Total Salary: ₹75,22,000

Exemptions

  • Total amount of any other exemption under Section 10: ₹15,000

Since I am filing ITR-2, the utility requires a salary breakup to claim the exemption under Section 10(14)(i). To accommodate the allowance, I tried reducing the Basic Pay from ₹75,00,000 to ₹74,85,000 and intended to report the remaining ₹15,000 as an allowance.

However, after modifying the Basic Pay, I receive the following validation error:

 

If I keep the Basic Pay as ₹75,00,000, I cannot claim the exemption because I receive another validation error:

"Exemption u/s 10(14)(i) cannot be more than the value of Salary under 'Conveyance Allowance', 'Other Allowance' & 'Others' in Section 17(1)."

My question is:
How should the salary breakup be entered in ITR-2 when Form 16 reports only the total salary under Section 17(1) and "Total amount of any other exemption under Section 10", without separately showing the corresponding allowance (e.g., Telephone Allowance)?

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On 02 July 2026 at 10:00 Report
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Quick Summary
When filing ITR-2 and claiming exemptions like Telephone Allowance under Section 10(14)(i), it's crucial to provide a detailed salary breakup. The ITR utility requires allowances to be reported separately, not just as a reduction in basic pay. Ensure your salary schedule accurately reflects each component, such as basic pay and specific allowances, from your Form 16 Part A, so the total matches your Form 16 Part B gross salary. The system will then correctly apply the exemption.

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Finance/Compliance Consultant
69550 Points Posted on 02 July 2026

You are receiving the validation error because you are reducing the total salary without accounting for the allowance in the "Other Allowance" fields. To fix it: (1) Identify the gross amount of your telephone allowance from your payslips, (2) report the actual Basic Pay and the Allowance as separate line items in the salary schedule so they sum up to your total Form 16 salary, and (3) claim the exemption under the Section 10 section. Always report the gross amount received; the software will then apply the exemption to reduce the taxable amount.

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On 02 July 2026 at 10:15
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Tax Consultant
1848 Points Posted on 11 August 2026

The pre-filled salary in ITR-2 comes from Form 16 Part B, but the BREAKUP fields (Basic, HRA, allowances) need to be entered manually from Part A of your Form 16 ,  the portal does not auto-split these.

To fix it:
- Go to Schedule Salary in ITR-2
- Click on the employer row and expand it
- Enter each allowance head (Basic, HRA, LTA, Special Allowance, etc.) from Form 16 Part A
- Total must tally with the gross salary figure that was auto-populated

If HRA is in Form 16 but you are under the new regime, the HRA exemption claim still shows as NA ,  that is normal. If you are under the old regime, claim HRA exemption separately in Schedule 10A.

For reference on what fields to fill and which ITR form to use, this [ITR filing mistakes guide for AY 2026-27](https://taxgarden.in/blog/itr-filing-mistakes-10-common-mistakes-avoid-2026-27) covers the salary schedule errors people commonly make.

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On 11 August 2026 at 12:41

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