based on inputs by Meeta Kapoor
Filling the salary details while filing the tax returns for Financial Year 2018 – 19 is set to get easier. The simplification will allow user to simply Copy and paste the details as present in the Form 16. This has been possible as ITR1 has been synchronised with Form 16 . Previously filling ITR1 was a task in itself, and often caused problems as many forms were rejected due to errors on filling the form.
Chartered Accountant, Naveen Wadhwa, DGM, Taxmann.com says, “A salaried person files his return on the basis of Form 16 (TDS Certificate for salary) issued by the employer. Form 16 contains all information about the salary income of an assessee and tax deducted thereon. However, in respect of allowances, only the exempt part is reported in Form 16 and not the taxable part. ITR forms for the previous year, i.e., for FY 201718 required figures of taxable allowances, but Form 16 doesn’t contain such information. Due to this salaried persons were facing difficulty in reporting the taxable portion of allowances.”
Wadhwa also said “In order to remove this difficulty and to bring the ITR forms in sync with Form 16, in the new ITR forms the exempt part of allowances are required to be reported instead of taxable part. Hence, the salaried persons will not be required to use their salary slips for filing return of income and they can simply file it on basis of information contained in Form 16.”