ITR AY 2014-2015 : Exempt income

If HRA exempt and Conveyance allowance is greater than 10000 but it is considered in Form 16 issued by Employer, then which form should be filled – ITR1/ITR2?

What income should be reported in D22: Exempt income only for reporting purposes column of ITR-1?

If HRA exempt is already considered in Form 16 issued by Employer. Do we need to show HRA exempted amount in D22?

If Conveyance allowance is already considered in Form 16 issued by Employer, do we need to show it in D22?

Do we need to show Medical reimbursement received against bills in D22?

If Savings bank account interest is shown in "B3: Income from Other Sources" and in 80TTA for deductions, do we need to show it again in D22?

Do we need to show Interest on PPF in D22?

asked Jun 07 '14 at 21:51 by Gauri 1113


If exempted income is more than Rs 5,000, ITR2 would have to be used.

Exempted income include following things:

  • Interest income (PPF/GPF etc)
  • Dividend income
  • Long-term capital gains on which Securities Transaction Tax is paid
  • Net Agricultural income
  • EPF/Gratuity withdrawal
  • Leave encashment amount
  • Gift from relatives and upto Rs 50K from non-relatives
  • Others, (including exempt income of minor child)
  • Children education allowance, Conveyance allowance, House rent allowance, Leave travel allowance, uniform allowance, and perquisites.

Even if these are reported in Form 16, these needs to be reported under exempted income.

Medical reimbursements need not to be shown.

Saving account interest need not to be shown in exempt income.

PPF interest needs to be shown under exempt income.

answered Jun 07 '14 at 23:04 by Pankaj Batra 5.2k320

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Hi pankaj, R u sure that HRA is included in "exempt income 5000" . Some representatives came from icici in our company and they filed ITR1 for all te employees and they all had hra greater then 5000.I am so confued about ITR1 and ITR2. It is again a headache if the form comes back and we have to file the rectification.
(Jul 22 '14 at 12:48) nishima27
Yes, we are sure about it. And your employees had to fill ITR-2 only as their exempt income was more than 5,000. IT department can send notices to all such assessee. Last year they didn't did this, but this year they may be more strict on this rule.
(Jul 22 '14 at 16:35) Pankaj Batra
1
thanks pankaj .
(Jul 23 '14 at 11:18) nishima27
i was doing it throughtaxsmile.com and they genertaed ITR2 so i was confused why suddenly this year they have created ITR2 and not ITR1.Actually i saw so many blogs regarding "exempt income 5000" and what all thigs are included under that and evrywhere it was written that more clarificaion needed whethere HRA,conveyance ,LTA are included in this or not.Thanks for the clarification
(Jul 23 '14 at 11:18) nishima27
There's only one column "Interest Income" in EI tab of ITR2. Does the sum of all the applicable incomes (PPF int, HRA, Conveyance etc.) have to be added to this column only? Thanks, -Vaibhav
(Jul 25 '14 at 21:43) jvaibhavj
HRA would go into ITR2 - sheet PARTB – TI – TTI – SAL, in Schedule S in 2 (iii) section. Conveyance would go into 2 iv of same sheet. PPF interest would go into EI sheet of ITR-2 under 1 - interest income.
(Jul 26 '14 at 20:00) Pankaj Batra
Pankaj - Your answer is very helpful. I've filled up ITR-2 and added exempted income in EI sheet. I expected this amount to get deducted in Total income in PARTB sheet; however I do not see it getting deducted. Am I doing anything wrong?
(Jul 27 '14 at 20:47) kams
Exempted income is only for reporting purposes and no computation is made in income tax return sheet using these values. You should show your taxable income after deducting exempt income only as ITR won't deduct it itself.
(Jul 28 '14 at 12:32) Pankaj Batra
Thank you once again, Pankaj. In other words, while entering salary detail in Schedule S in PART B, I should deduct the exempt income myself and enter in Serial Number 1 figure. Is that correct?
(Jul 28 '14 at 14:34) kams
Yes, you should not include exempt income in income from salaries field. This should have already been taken in form-16 by your employer, by giving exemption u/s 10.
(Jul 28 '14 at 14:37) Pankaj Batra
Dear Pankaj, thanks for guiding all of us...I must say your knowledge is far far better than so many CAs as well as Income tax department officials...nobody has guided so well...Sir I want know one more thing If you could enlighten that...along with my PPF account with annual investment of 1lac , I have opened one more PPF account for minor child under my guardianship with one more Lac deposit. So my question is do I need to mention those extra 1lac in 80c head? if so then I have to mention 2lac under 80c instead of 1lac only in ScheduleVI-A (a) of ITR-2...Thank you once again. Rakshak Jain
(Jul 28 '14 at 16:35) Rakshak Jain
@rakshak-jain First, its not allowed for a person to invest more than one lac into PPF accounts owned by him. As per law, you should only be getting interest on 1 lac only. However, due to non linking of accounts with PAN/unique identity, people have been earning even on more than one lac investments. Now coming to 80C deduction. Max deduction u/s 80C is one lakh only, so even if you declare any amount more than this, you would only get deduction of 1 lakh only.
(Jul 28 '14 at 16:40) Pankaj Batra
Pankaj Sir I asked this question for reporting purposes only...You are right only 1lac rebate can be availed under 80c but do I need to declare that extra 1lac invested in PPF with my minor child's name along with my 1lac. Please clarify...
(Jul 28 '14 at 16:47) Rakshak Jain
Please don't report it else they may send you notice for depositing more than one lakh into PPF accounts.
(Jul 28 '14 at 16:50) Pankaj Batra
Ok thanks sir...but that separate PPF account is under my guardianship toward my minor child and PPF allows that...Yes your point is quite reasonable, may be due unawareness in IT deptt I get a notice about this declaration...
(Jul 28 '14 at 16:55) Rakshak Jain
Its allowed to have minor child accounts, but its not allowed to earn interest on more than one lakh deposit in all accounts combined.
(Jul 28 '14 at 16:58) Pankaj Batra
Thanks a lot...
(Jul 28 '14 at 17:07) Rakshak Jain
showing 5 of 17 show all

HRA exempt allowance has to be shown in Schedule S tab in point 2(iii) in ITR 2 form.

answered Jul 26 '14 at 02:25 by JRJ 161

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Asked: Jun 07 '14 at 21:51

Seen: 8,519 times

Last updated: Jul 28 '14 at 17:07