ITR-2 Allowance exempt under Section 10

POSTED BY Kumar Abhinav ON July 1, 2012 3:30 pm COMMENTS (14)

Hi,
I’m filling ITR-2 and in sheet “PARTB – TI – TTI” where we’ve to give salary details, we’ve to provide details of “allowance exempt under section 10”.
I observed that the amount entered is not taken into account for income tax calculation and same is mentioned in Income Tax payer guide for ITR-2.
But in Form-16, my company has deducted the same allowance from the Taxable Income.
This is resulting in net tax payable from my side.
I wanted to know that aren’t we supposed to claim Conveyance allowance if filing ITR-2?

Also, I’m filing ITR-2 because I’ve 1 home loan. I just read in another query that I should use ITR-2 if I’ve more than 1 home loan, is that right?

Thanks,
Abhinav

14 replies on this article “ITR-2 Allowance exempt under Section 10”

  1. DineshKumarV says:

    I am a salaried employee . some amount has devited of last year but my employer has not deducted the same from income of this year . How I can reflect /deduct the same in itr. Thanks

  2. Alok says:

    Abhinav,
    I also have the same issue. Not able to find out the conveyance allowance given in ITR2 which I see it in form16 issued by employer.

    BR
    Alok

    1. Brijesh says:

      All allowances exempt under section 10 are already deducted from gross salary.
      That’s why It reads “Salary (Excluding all exempt/ non-exempt allowances, perquisites & profit in lieu of salary as they are shown separately below)”.

      Note the text – ‘Excluding all exempt/non-exempt allowances’. The details of allowances u/s 10 to be filled are for information/tally purposes only.

      In salary column user should fill the ‘income chargeable under the head salary’ from form 16 if HRA and other allowances are already claimed (which is mostly the case).

      1. Chetan says:

        HI Brijesh
        My form 16 shows the following heads:
        1. Gross Salary
        (a)Salary as per provisions contained in Sec.17(1)
        (b)Value of perquisites u/s 17(2)
        (d)Total amount (addition of the above 2)
        2. Less : Allowances to the extent exempt u/s 10
        LTA Exemption : xxx
        Leave salary exemption : yyy
        Gratuity contribution exemption : zzz
        3. Balance (1-2) :
        So when we are filling ITR2, we only have option of
        1.Salary (Excl all exempt/ non-exempt allowances, perquisites ,profit in lieu of sal as they are shown separately below)
        2.Value of perquisites (refer Form 16 from employer)
        Income chargeable under the Head ‘Salaries’ (1 + 2 + 3 + 4 – 5)(gets auto calculated)
        7.Allowances exempt under section 10 (Not to be included in 6 below)
        i Travel concession/assistance received [(sec. 10(5)]
        ii Tax paid by employer on non-monetary perquisite [(sec. 10(10CC)]
        iii Allowance to meet expenditure incurred on house rent [(sec. 10(13A)]
        iv Other allowances
        Total (which does not take into account the sec10 allowances)

        In this case, how do we account for the Sec 10 allowances. Also, do we just club gratuity and Salary encashment under other allowances?

        Please help urgently.

  3. MDTHAKKER says:

    Dear sir,

    I have earned rs.15000/- on sales of equities after holding it for more than two years. It means that it is long term capital gain. When I fill the ITR-2 and enter this amount in long term capital gain, it calculate 10% tax on that. How to get rebate under section 10(38) as I do not find any cell in the excel ITR-2 form. Kindly requested to guide me.

    Thanking you

    1. Hi MDTHAKKER

      This query belongs to CA domain, hence we are not the right people to comment on this issue.

      I suggest you get in touch with a CA for this in your city.

      We also have a CA partner incase you want to explore that, Just fill in your details here and they will give you a complimentary call back

      https://www.jagoinvestor.com/solutions/ca-services

      Manish

    2. Brijesh says:

      Hi MDTHAKKER,

      LTCG on account of sale of Equity or Equity related instruments is not taxable provided there are no bonus share whose holding period is less than a year.

    3. Deepak says:

      Long term capital gains on equities have to be filled under Schedule EI. It should not be filled in Schedule CG

  4. VG says:

    Hi Senthil,
    I’m facing the same problem as you. Did you find out where you can claim 10 (10AA) in ITR2

    Hi Ashal,
    Can you please assist with Senthil’s query?

    1. Dev says:

      Did you come to know where to specify about this?

  5. Senthil says:

    I am filing ITR-2 for AY 2015-2016 (FY 2014-2015), I have received a Leave Encashment when I resign my previous job in above mention period. I came to know that Leave Encashment at the time of leaving the job is tax exempted as per sec 10(10AA)(ii). But I could not find the correct column in ITR-2. Please assist me where I can mention 10(10AA)(ii) amount in ITR-2.

  6. Dear Abhinav, First of all let’s decide which ITR form is right for you?

    If you do have only following income sources –

    Income from salary, Income from other sources (Interest) & Income from house property (home loan benefit for only 1 house property up to maximum of 1.5L Rs. for self occupied property), it’s ITR-1 for you.

    In case you do have either more than 1.5L Rs. & the property is on rent or more than 1 property &/or capital gains, then only you should file ITR-2.

    Now based upon the above data, please decide first which form is the right one for you.

    Thanks

    Ashal

    1. Kumar Abhinav says:

      Thanks Ashal. I actually called up the Customer Care and their reply was same.

      1. Dear Kumar Abhinav, so you decided or not?

        Thanks

        Ashal

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