Until AY 2017-18, the format of ITR-1 was such that employees could easily fill in ITR-1 on the basis of their Form 16 information. For AY 2018-19, the Income Tax Department has notified a new ITR-1 format which requires salary break-up information from employees. However, the Form 16 (as per the format notified by the Income Tax Department) issued by employers for FY 2017-18 does not contain the salary break-up information.
What is asked for in ITR-1 and what does Form 16 contain?
For AY 2018-19, ITR-1 requires the break-up of salary as presented in the screenshot below.
Employees, as can be seen in the above screenshot, need to submit information on salary (excluding all allowances, perquisites and profit in lieu of salary) and allowances to the extent not exempt from tax, separately. Form 16, given its current format, provides the total salary amount (including the allowance amount) without the break-up.
New screen for salary break-up
We have created a screen called “ITR Info” in HRWorks, our payroll portal, which presents the break-up of salary to help you file your ITR.
Please note that the amount shown under “Income chargeable under the head ‘salaries'” in the above screenshot should equal the amount under “Income Chargeable Under the Head Salaries” in Part B of your Form 16 as shown below.
The ITR Info screen also presents the break-up of your taxable allowances for your convenience.