May 24

How To Fill Salary Details in ITR1 and ITR2

Team Antworks

Documents Required for Filing ITR1 and ITR 2:

The following documents are mandatory to be submitted for filing the salary details in ITR1 and ITR2:

The individual’s employer will issue a Form 16.
The documents that are required to refer to for the salary details to be mentioned on the ITR forms.
One must ensure that the TDS that has been mentioned in the Form 16 is the same as the TDS information in Part A section of the Form 26AS.
Incase a person’s claim i.e. the exemptions , the deductions (as in 80C, 80D) and certificate showing principal as well as interest breakup on the particular loan on the house or property has to be submitted as well.

A Few Tips For Filling Salary Details in ITR1:

ITR1 has this singular field for filling the details about Income From Salary. So it is essential to note the Income chargeable under the head that includes Salaries in Form 16 i.e. point no. 6 and not the Gross Salary as it is in the ITR2 which is generally marked as point 1 in the Form 16:

If HRA claimed then one needs to fill information in point 6, Income chargeable under the head Salaries.
If HRA is not claimed : You need to calculate the HRA using a formula shown in ITR2 and then subtract it from the Income chargeable under the head Salaries.

Tips To Fill Salary Details in ITR2:

In ITR2 one needs to fill Schedule (or section) S, Income from Salary :

How to Fill in Schedule S of Income Tax Return ITR2:

Salary (Excluding all exempt/non-exempt allowances,perquisites & profit in lieu of salary ) in Schedule S a from (a) of Gross Salary in Form 16 – Professional Tax – HRA – Allowance to the extent exempt u/s 10
Allowances exempt under Section 10 :Total of all the allowance exempt(ex: House Rent Allowance, Transport Allowance,) from Total of (2) Less : Allowance to the extent exempt u/s 10 This consists of Allowances shown in Form 16 + HRA calculated
Value of Perquisites in Schedule S a from (c) (b) Value of perquisites under section 17(2) 21600.00 (as per Form No:12BA,wherever applicable) in Form 16.
Profits in Lieu of Salary in Schedule S a from (c) Profits in lieu of salary under section 17(3) 0.00 (as per Form No: 12BA,wherever applicable) 5(in color maroon) in Form 16.

Tips to Fill Schedule S in ITR2 When HRA Has Been Claimed:

The individual needs to keep their Form 16 ready for reference for filling in Salary Details:

Check whether your Salary includes Professional Tax in it :
This is listed on your Form 16 Tax on Employment as well as on your payroll receipt. This generally runs to a flat amount of Rs. 2,400 for each year for most professionals. Most Indian states levy this tax, but make sure that it applies to the state the individual belongs to or not.

Salary (Excluding all exempt/non-exempt allowances,perquisites & profit in lieu of salary ) in Schedule S a from (a) of Gross Salary in Form 16 – Professional Tax – Allowance to the extent exempt u/s 10
Allowances exempt under section 10 :Total of all the allowance exempt(ex: House Rent Allowance, Transport Allowance,) from Total of (2) Less : Allowance to the extent exempt u/s 10
Value of Perquisites in Schedule S a from (c) (b) Value of perquisites under section 17(2) 21600.00 (as per Form No:12BA,wherever applicable) in Form 16.
Profits in Lieu of Salary in Schedule S a from (c) Profits in lieu of salary under section 17(3) 0.00 (as per Form No: 12BA,wherever applicable) 5(in color maroon) in Form 16.

Tips To Fill Schedule S in ITR2 when HRA Has Not Been Claimed:

In case the individual’s HRA has not been mentioned and yet you are eligible then the person needs to calculate HRA using the formula under section 10 mentioned in Form 16 . For instance if your LTA is Rs. 50,000 and therefore the HRA that computes to Rs. 1 lakh then the Allowances that would be exempted under the section of the Income Tax Act would be Rs 1.5 lakhs.

The least of the mentioned below should be ideally claims as the House rent allowance: