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Salary in form16 & 26as, includes non-taxable allowance, itr1 help ???

ashish agrawal (Entrepreneur) (60 Points)

12 July 2018

My annual salary is 9,60,000 plus Rs 1600 monthly transport allowance. Now my employer has issued me Form 16 with total payment of Rs 9,79,200, as credited to my account. While 26AS also has the same amount paid to me. My employer while filing 24Q annexure II, has also mentioned net taxable salary paid to me Rs 9,60,000. There is no coloumn in 24Q annexure II to report non-taxable allowance.

Therefore my taxable salary total is Rs 9,60,000. But while importing 26AS data into ITR 1, it is taking the taxable salary paid as Rs 9,79,200, automatically on income tax website.

But, my taxable salary is only Rs 9,60,000; which I should be filing in ITR 1. My concern is, will I get a IT notice / order for demand for mismatch or showing less income?

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5 Replies

CA Naveen Chand (Chartered Accountant) (12729 Points)
Replied 12 July 2018

FILE RETURN AS PER FORM 16 PART B

NOTICE WILL COME FOR MISMATCH IN 26AS AND ITR

IT CAN BE HANDLE THERE AFTER

BUT SHOW THE IMCOME & DEDUCTION AS PER FORM 16

Ruchika Somani (Coaching and Practice in Tax Audit Law.) (4429 Points)
Replied 12 July 2018

SHOW BASIC SALARY AS PER 26 AS AND SHOW CONVEYANCE EXEMPT ALLOWANCE SEPARATELY SO NET INCOME WILL BE 9,60,000.

TO AVOID NOTICE.

SHIRISH S S (Proprietor) (1016 Points)
Replied 12 July 2018

1) Bifurcate total taxable salary into Basic Salary , Perquisites and Taxable allowance

2) If Professional Tax is there write under sec 16 deductions

3) Fill 27 d and select 10(14)(ii) - transportation allowance as 19200.

ashish agrawal (Entrepreneur) (60 Points)
Replied 12 July 2018

like I said above, the salary mentioned in 26AS & Form16 is same, i.e Rs 9,79,200 which includes non-taxable conveyance allowance.

If I show taxable salary in ITR 1 as Rs 9,60,000 which is the case & claim exempt income of Rs 19,200 u/s 10(14)ii, there is still a mismatch because the value in 26AS says Rs 9,79,200

The other confusion is, in ITR 1, in coloumn 18, TDS from salary as per form 16.Now, the under the coloumn "income chargable under salaries" should carry Rs 9,79,200 or Rs 9,60,000 ? This value should match form 16.

The net salary mentioned by employee in Annexure II of 24Q is 9,60,000, but Form 16 carries total amt paid.........confusing......