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Itr2 doesnt include deductions under section 10

Vicky (Others) (41 Points)

07 June 2013

itr2 doesnt include deductions under section 10 ? Why ?

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9 Replies

CA Apoorva Gaurav (CA) (368 Points)
Replied 09 June 2013

It does...

check out schedule "EI" dear

1 Like

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Vicky (Others) (41 Points)
Replied 10 June 2013

Originally posted by : Apoorva Gaurav
	It does... check out schedule "EI" dear

So where does it go in the others section ? I am talking about HRA and Gratuity etc

CA Apoorva Gaurav (CA) (368 Points)
Replied 10 June 2013

In the sheet PART B - TI - TTI

on the bottom check out "SCHEDULE S" -> 2nd row

Vicky (Others) (41 Points)
Replied 10 June 2013

Thanks Apoorva...But if you notice while calcluating the final tax it is not taking into consideration that Amount.

Also I think what ever goes in section EI others is more from information perspective. Because i dont see any deduction or calculaiton impact becuase of adding any amount there ?

Can you please clarify above both ?

Vicky (Others) (41 Points)
Replied 10 June 2013

Also if u notice there is

income chargeable under the head salaries 1+3+4+6

where is it subtracting entries from 2

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J S BHAVSAR (CONSULTING) (1288 Points)
Replied 11 June 2013

When I filled my return, I also noticed this that there seems to a little error there. In first line it says enter all the gross salary which you received. If I enter the first line of Form 16, the entire calculation goes haywire. Therefore, I entered the line from Form 16 which says "Income under the head Salaries" in the Line 1 of PartB - TTL sheet. I also entered the Sec 10 amount from Form 16 and noticed that it has no role to play in the calculations by reducing itself. It means they just want to see.

Another weird part for Maharashtra and some other states is Profession Tax. Profession Tax is exempt from Income Tax under Chapter VIA and is excluded from income calculations before arriving Income Under the head Salaries. However, ITR-2 the most weirdest forms of all, does not even have a word to club all incomes and deduct all exemptions. On Line 2 which says "Income exempt Under Sec 10" should we include the Profession Tax amount also from the total income? Then the total calculation cannot match, as excel does not subtract that amount.

One more thing: Taxpayers know that the dividend received in the hands of the investors from traded equity stocks and mutual funds is tax-free. If we enter the Dividends, Gross amount as Dividends received on Income from Other Sources and go and enter same amount in Exempt Income sheet as Dividend is exempt, the amount does not get subtracted. So the correct way to mention that piece is do not enter anything on Income from Other Sources sheet for Dividends, and simply go and declare your dividend amount which is not calculated in the taxable income.

In short, the exempt income sheet has no role to play and the total of that EI sheet does not get subtracted anywhere. Its just there for record. So tomorrow, if the department feels to add that income, they can revise.

A new issue is bank accounts made mandatory with IFSC codes. What is a taxpayer from Taluka has account in Merchants bank, Vyapari Bank, Nagri Bank which does not have IFSC code for his savings account? Even if taxpayer is indicating that "in case a refund arises, please issue a cheque" still the ITR-2 is stressing for bank account 11 or more digits long and IFSC code. It does not say "if you dont have it, then do this". I see a very ill motive here. I also see a ill motive for joining aadhar numbers to bank accounts and join to LPG account.

Very weird.

BDeb (Engineer) (25 Points)
Replied 23 July 2013

Hi,

I am also facing the same problem with ITR2, income chargable doesnt reduce "allowance exempt under section 10" in sheet PART B - TI - TTI. If i mention "allowance under section 10" in Schedule S (2nd row), calculation of Income chargable (row 7) doesnt consider this. As a result tax payable is coming more.

Should I mention salary in Schedule S (1 row) after reducing allowance under section 10 ?

Thanks

B Deb

karthikeyan (Others) (21 Points)
Replied 31 July 2015

In the salary sheet in itr2 / 2A sl.no.1 mention salary, it is mentioned as "excluding all exempt" and hence we need to enter the income chargeable under head salaries in this case and mention the allowances exempt under sec 10 in the sl no. 2. It wont deduct from the salary just for their information

Ram (Engineer) (22 Points)
Replied 18 October 2018

I am having this exact same issue. I submitted ITR2 by deducting u/s 10 allowances myself and putting in Sr No 1 of Schedule S but I got intimation from tax department that my income declaration in ITR does not match with 26AS.

Can anyone please answer how this issue can be handled? Where can the u/s 10 exemptions be declared so that they are deducted from the Gross Salary in which case the Gross Salary would match with the Salary Income in 26AS?