Salary

Salary income is a crucial component of your income tax return in India. Here's how it's treated:

Including Salary in ITR:

• When filing your ITR, you need to report your entire salary income earned during the financial year.
• This includes your basic salary, dearness allowance (DA), house rent allowance (HRA) (except exempt amount), leave travel allowance (LTA) (except exempt amount), and any other taxable components mentioned in your Form 16.
• Form 16, provided by your employer, summarizes your salary details for the year, including taxable income and deducted TDS (Tax Deducted at Source).

Tax Treatment of Salary Components:

• Basic Salary & DA: Fully taxable as income.
• HRA: A portion of your HRA can be exempt from tax based on your accommodation type (rented, owned) and city classification. You'll need to submit rent receipts and other documents to claim this exemption.
• LTA: The amount spent on travel as per LTA rules might be exempt from tax. You'll need to submit travel bills to claim this exemption.
• Other Allowances: Check with your employer or a tax professional to determine the taxability of other allowances mentioned in your salary slip.