how do I show the income from perquisites and allowances that are exempt? Eg, HRA and Transportatio…
how do I show the income from perquisites and allowances that are exempt? Eg, HRA and Transportation allowance? Assuming I have no other Income other than Income from salaries and Interests from fixed deposits.
Income from allowances and perquisites can be reduced from your gross salary if they are allowed. Let me explain.
Allowances like HRA and Transportation allowances are EXEMPT** upto a limit. This means that you need not include "the exempt part" in your return of Income.
Since you have no other income apart from salary and Interests, you can fill up ITR -1 online.
In the tab called "Taxes Paid and Verification" go to exempt income, and click on the name of the exempt income from the list, and enter the corresponding amount.
These income will only be proof of your income, but will not be added to your taxable income, thereby causing no change to your tax liability.
** (NO NEED TO PAY TAX ON IT, NO NEED TO INCLUDE IT IN CALCULATION OF INCOME, just show it under exempt Income in the tab "Taxes Paid and Verification"
