Hello:
my Form 16 from my employer lists my gross salary. it then goes on to deduct any rent allowance, transport alowance and childrens education allowance, after all the deductions, it lists my final salary under "Income chargeable under the head salaries'.
example: gross salary - 10 lakhs
rent - 100000, transport allowance - 2000, childrens education allowance - 2400
Income chargable under the head salaries = 10,00,000 - 1,00,000 - 2,000 - 2,400 = 8,95,600
question:
based on my understanding, the salary i need to use for tax filing is INR 8,95,600 right ?
or
is it 10,00,000 ???
I am asking this because i receiving a letter from CPC where they are using the 10,00,000 and have calculated my tax instead of lower number and want me to pay the difference in tax along with interest.
If the lower number is infact correct, how should i report the error
i guess if the higher number is correct, i will have to pay :-(
appreciate your response and suggestion.
CAclubindia
