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Transport Allowance in form 16

Raj Thakkar (ARTICLE) (382 Points)

17 July 2019

If form 16 is showing transport allowance as deduction which is now not allowable as exemption then what should I do while filing ITR whether to file it inconsistent with form 16?Will there be any issue if we file ITR not consistent with form 16?

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5 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177824 Points)
Replied 17 July 2019

The transport allowance is not deductible when standard deduction is available, so add it back to taxable salary. That may have been treated similarly in form 16.

Such minor adjustment possible and allowed as variation from Form 16.

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abhishek tiwari (CA) (79 Points)
Replied 17 July 2019

There is a standard deduction of ₹ 40,000 for transport allowances and medical allowances so there is no need to claim it separately

Raj Thakkar (ARTICLE) (382 Points)
Replied 17 July 2019

Thank you very much to both of you for the reply.. If there is a mismatch in the amount of TDS u/s 192 between form 16 and 26AS (26AS is showing lower amount) then what should I suppose to do? Should I take the tds from form 16 or 26AS? Should I need to discuss this with the employer? Please guide..

Mehul porwal (266 Points)
Replied 17 July 2019

You should bring this to the notice of employer, so that he can file correction entry. meanwhile you should file your return before due date with corrected figures calculated by you.

Raj Thakkar (ARTICLE) (382 Points)
Replied 17 July 2019

Thank you sir for the reply but in this case if take tds as per 26 AS then I have to pay the tax of the difference amount or should I claim the tds as per form 16?