ITR2 Validation Error u/s 10(10)

How much amount you have claimed in sec. 10(10D) this year?

How much salary has been offered in current ITR?

Hi,

I am filing under the new tax regime. I claimed ~4.8 lakhs Gratuity in 2019 upon exit from my earlier company and now u/s 10(10D), I have claimed ~5.4lakhs, so this is well within 20lakh limit.

The Salary includes this amount.

I think form 16 does not support the claim in full value, hence the defect. Check form 16 and try to fill value as per AIS report.

Also check if the defect gets removed by claiming 5.2 L under sec. 10(10D)?

The AIS does not contain any details of Gratuity. Other details are matching including Salary etc.

I tried the following and here are the results: 

a) Removing Sec 10(10)-Death-cum-retirement gratuity received and placing the entire amount in Sec 10(10AA)-Earned leave encashment. It got validated.

b) I removed Sec 10(10AA)-Earned leave encashment and now even after placing Rs 1 in Sec 10(10)-Death-cum-retirement gratuity received, I am getting error while saving - Amount u/s 10(10) cannot exceed Rs. 20 Lakhs or income offered under the head salary under sub head gratuity receipt where Nature of employment is 'Public Sector Undertaking', 'PSU-Pensioners', 'Others-Pensioners' or 'Others'

Continuing with the earlier results, Shoud I breakup the salary into Value of perquisites as per section 17(2) [With the Gratuity amount] and Salary as per section 17(1) [With the balance of the salary amount] ? Currently, I have placed the entire amount in 17(1).

Hi,

The Issue is now resolved. It was a mistake on my part. In the Schedule Salary - Salary as per section 17(1) - I had given the entire amount under Basic Salary. I have now broken that into 3 parts (Basic, Gratuity, and Leave encashment) and am able to add line items for Sec 10(10AA)-Earned leave encashment and Sec 10(10)-Death-cum-retirement gratuity received under Allowances to the extent exempt u/s 10 .

The descripttion of Allowances is very misleading as it mentions that -  3. Less : Allowances to the extent exempt u/s 10 (Ensure that it is included in Total Gross salary in (2) above) - which gives the impression that the allowances amount should just be included somewhere in the total gross salary. It does not state that the amounts should be explicitly mentioned in the Gross Salary as it tries to match against the line items and not the gross.

Yes, that is correct..

Happy that the problem got itentified and hence resolved by you.

Good luck...

Always validate each filled section before proceeding with the next section.

Any shortcuts to save time will waste 10 times more time.