Uttam Saha (TAX PROFESSIONAL) (115 Points)
06 July 2019In ITR 1 - the TDS schedule is prefilled as per Form 26AS values (gross salary amount); do we need to edit the amount to make it equal to the amount stated under Income Chargeable under the Head Salaries (Gross Salary - Standard Deduction - PTax) assuming that there are no exempt salary items.
Or
Should we leave the TDS schedule as per Form 26AS ignore any warning for creating the X M L file and upload the return.
Rishab Jain
(Audit assistant)
(79 Points)
Replied 06 July 2019
I think there is no need to edit that amount. As that is prefilled amount which is based on Form 16. Basically that is the details of only tax paid.
Uttam Saha
(TAX PROFESSIONAL)
(115 Points)
Replied 07 July 2019
In case we do not edit the amount in the TDS schedule and keep it at the gross salary values in the prefilled form, while preparing the X M L file through ITR 1 Java Utility PR 3 an error is being genereated " Amount of gross salary disclosed in income details is less than 100% of Salary reported in Schedule TDS1 - Rs.10".
However if we ignore the error, it is allowing us to save the X M L file and upload the return. Is it ok to ignore the warning or will there be any issues with regard to processing of the return by the IT department?
RAJKUMAR TG
(397 Points)
Replied 10 July 2019
Uttam Saha
(TAX PROFESSIONAL)
(115 Points)
Replied 11 July 2019
I had spent quite some time reading on the topic and had received both views that you should enter gross salary or income chargeable under head salaries under the TDS schedule.(this being the more dominant view) {including on www.caclubindia.com forum}
I decided to go with Gross Salary in the TDS schedule because of the following reasons:
1) In the pdf file - Instructions for filling the ITR - Schedule TDS (Pg 14 of 16), "Please enter the gross amount of payment or receipt in respect of which tax has been deducted or collected at source"
2) In the pdf file - Under XML schema - ITR Validation rules Version 1.4 dated 26/06/2019 (Pg 10 of 14), "The amount of Gross salary disclosed in "Income chargeable under the head ‘Salaries’ in Income details should be at least 100% of Salary reported in Schedule TDS1." - This category 'C' defect has been removed on 12/05/2019
3) Further as per the 24Q, TDS returns it is a normal practice to enter Gross Salary, therefore for an employee who has received 12 months salary - the prefilled details will include the Gross Salary details as per 26AS. Therefore it is advisable not to edit the gross salary values.
4) Further my understanding is the department uses the TDS Schedule mainly to cross check the TDS credit claimed by the assessee.
What is more interesting that i am using the Income Tax efiling Java Utility PR3 - After reading so much on the topic and finally making up my mind now even after mentioning the Gross Salary details in the TDS schedule - I am not getting the error. The only change I have done in the meantime is updation of Java.
There are my personal views and only after the returns are processed in some months will I be able to update on the repercussions of my decision. I do not claim that this the correct option.
I decided to spend some time on the topic because I guess when an individual is looking for answers he/she wants clarity and relevant information. Hope I have been able to remove the clutter.
RAJKUMAR TG
(397 Points)
Replied 11 July 2019
J S BHAVSAR
(CONSULTING)
(1288 Points)
Replied 11 July 2019
Once I had kept such gross salary instead of income under head salaries.
Then during processing a tax demand got raised. I then had to clarify that the income under head salaries and filed rectification.
I believe more and more errors are being kept in the ITR schemas on the excel version. I think the software controls have shifted from Infosys LTD to TCS Ltd and after that the complications are arising. In ITR2
ITRs are moving into a dangerous territory from last 3 financial years. I dont understand why the department is doing this.
Som
(Article Assistant)
(51 Points)
Replied 18 July 2019
I am facing another problem . While filling my IT return i have taken salary u/s 17(1) one rupee more than given in form 16 by mistake . I have taken my salary as 649234 in Itr but given in form 16 as 649233 . In tds details I hav given salary as 649233 and after filling of return there is no tax credit mismatch that I can ensure . Iam eligible for refund .My only question is wheather that excess one rupee given by me in the ITR will be a reason for an ITR notice u/s 143(1)(a) or it will be proceessed smoothly ?
RAJKUMAR TG
(397 Points)
Replied 18 July 2019
J S BHAVSAR
(CONSULTING)
(1288 Points)
Replied 18 July 2019
It seems to me there is vast difference between the design of ITR forms in Excel Utility, Java Utility and ITR Online Form.
Also, if you visit online ITR1 form, the Exempt Income dropdown contains one item Exempted Dividend Income u/s 10(34) mentioned. But similar dropdown in Schedule EI of the ITR2 Excel it does not contain that Dropdown value.
Each technology team is different and they design / decide how to develop and deploy the forms.
ITR2 has another fun added where Schedule 112A is added and it has internal rounding effects applied wherein your Capital Gain from the broker and the total of Schedule 112A wont match because of pennies getting added due to rounding effect.
RAJKUMAR TG
(397 Points)
Replied 18 July 2019
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