Itr form for tax exemption on salary

I have salary income. Generaly every company provides Rs. 9600 / - Travelling allownace (Rs. 800/month) exemption under section 10 (as per Income tax law) without any bill. My company provide me this exemption in Form-16.

Beside that I have a medical expense of Rs. 500 /- Which company will give me as medical reimbursement Under (sec 17(2)) against medical bills of medicines as well hospital treatment bill. 

Now as per ITR-1(Sahaj) form -  exemption amount limit is 5000 only.

Now as I am going to get both exemption under sec 10 as well under sec 17(2). Can I continue with ITR-1 Or I have to use ITR-2 .

Pls. clerify this exemption not exceeding 5000 clause of ITR-1 and which all exemption is valid here.

 

 

 

 

 

Replies (3)

ITR 2  FULLY SURE

Exemption limit of Rs. 5000/- is the limit for exempt income which means income not chargeable to tax. Rs. 800 is a deductoin from fully taxable conveyance allowance (CA) received. Hence, it is not covered in the defination of exempt income. Some examples of exempt income are dividend income, LTCG in case STT is paid, interest income from provident fund etc.Similar is  the case of reimbursed medical expense. For more clarification you can  check out the exempt income segment of ITR-2 which specifically doesn't exempt CA. Moreover CA is covered under the head salary and not exempt income. It is a deduction n not exemption. Similar is  the case of reimbursed medical expense as in case no bills are produced then it will be fully taxable. So in my opinion, ITR -1 can be used n we have been practicing the same interpretation.

same problem occurred with me filling of return of my client .But A.O. confirmed me that it is ITR 2 So I am fully sure ITR 2

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