In ITR3, I tried the Java utility and the Excel utility for AY 2018-2019. Whatever I enter in the "Allowance to the extent exempt U/S 10" is not getting subtracted from the amount I enter in "Gross salary". You can enter the numbers for yourself in the ITR and see. Is this an error? I quit the job a little after the start of the financial year, and in the form 16 I received from my employer, the Rs.5574 is deducted from gross salary. But ITR3 is not subtracting the exemption amount from gross salary whether I enter the amount in LTA or as a new row in "Others". Is this an error in the ITR? The Rs.800 of professional tax is getting deducted correctly.
I asked a CA (whom I'm paying for consultation) and he's confused, but he says I can enter the gross salary not as 456888, but as 45688-5574 = 451314.
But I felt that's wrong to do that, and considered asking the question here to know if you can help with a solution. I'm sure I'm not the only taxpayer facing this problem.
The form 16 details:
1. Gross salary: 456888
2. Less: Allowance to the extent exempt U/S 10:
HRA exemption: Rs.0
Conveyance exemption: Rs.5574
LTA exemption: Rs.0
Gratuitiy exemption: Rs.0
3. Balance: 451314
4. Deductions
a) Entertainment allowance: Rs.0
b) Tax on employment: Rs.800
6. Income chargeable under "Head Salaries" : Rs.450514
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