Wednesday, June 12, 2019

A step-by-step guide to filling salary details in your income tax return


ITR-1 can be used to report income from salary, one house property, income from other sources, and agricultural income of up to Rs.5,000.


Business Standard : Salaried individuals can file income tax returns (ITR) using the forms ITR-1 or ITR-2. ITR-1 applies to individual resident taxpayers with a total income of up to Rs 50 lakhs. Whereas, ITR-2 applies to other individual taxpayers who do not have income from business or profession.

ITR-1 can be used to report income from salary, one house property, income from other sources, and agricultural income of up to Rs.5,000. The form ITR-2 can be filed by individuals having income from more than one house property, capital gains, holding directorship in any company, or unlisted equity shares.

The salary TDS certificate in Form 16 has been revised to provide for more detailed information on the various tax-exempt allowances and deductions provided under the income tax law. Part B of Form 16 has been revised to provide for details of the various exemptions and deductions allowed under the income tax law.

Filling up your ITR:
ITR-1
Taxpayers would have to fill in aggregate values of the broad components of salary:

Salary

Perquisites

Profits in place of salary

Furthermore, a complete break-up would need to be provided of all allowances exempt under section 10. For example:

House rent allowance

Leave travel allowance

Gratuity

Similarly, each of the deductions allowed under chapter VI-A from section 80C to 80U must be reported separately. For example:

Life insurance premium, tuition fees for children, and PPF investment under section 80C

Medical insurance premium under section 80D

Donations under section 80D

No comments:

Post a Comment