ITR
Salary in AIS higher than Form 16
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Facts
AIS shows salary as reported in the employer's TDS statement, which may include perquisites, arrears or a different treatment of allowances. Differences should be explained before filing.
Provisions and law
- Sec 17 (now Sec 16 to 18)Salary includes perquisites and profits in lieu of salary
- Sec 285BB (now Sec 510)Annual Information Statement of reported transactions and taxes
Analysis
Look for perquisites such as ESOP allotment value, a company car, or a joining bonus paid after Form 16 was issued. If ₹80,000 is an ESOP perquisite reported in Q4, it is taxable salary and should be in your return. If the difference is a reporting error by the employer, ask them to correct and give AIS feedback. Do not ignore it, as CPC may adjust.
Conclusion
- Ask HR for the salary reported in the TDS statement
- Identify the extra item: perquisite, bonus or arrears
- Include it if taxable, or ask for correction if wrong
- Give AIS feedback only for an error
A Savvy can do this for you
Pre-filing reconciliation of AIS, TIS, 26AS and Form 16
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