Need Your Guidance

[Asked by Guest]

As per new notification under Income Tax Act , If assessee has INCOME NOT CHARGEBLE TO TAX is above Rs, 5000/- then he has to file ITR other than ITR-1 .

Let me Know whether the allowances exempted for salaried employees are cover under the limit of Rs. 5000/- .

Ex. : Conveyance Allowance Rs. 9600/-

Should assessee file ITR - 1?

Please guide us.

[CAGOPALJI AGRAWAL]

To my view, the exempted incomes under the head salary would not be considered for the purpose of exempted income of Rs. 5000/- otherwise form 1 utility will be of no use as most of the employee are getting such exempted allowances more than 5k

AI Summary

Exempted salary allowances do not count toward disqualifying non-taxable income for filing the simplified individual income tax return.
The advisory reply states that exempted items under the head salary should not be taken into account for determining the prescribed non-taxable income limit that affects eligibility to file the simplified return, because treating such statutory exemptions as disqualifying would unduly prevent many employees receiving routine exempt allowances from using the simplified filing form.