Since the amount disclosed in income chargeable under the head salaries is less than 90% of Salary reported in TDS 1, please ensure to fill details in Others in Exempt Income

Since the amount disclosed in income chargeable under the head salaries is less than 90% of Salary reported in TDS 1, please ensure to fill details in Others in Exempt Income – an error that many of salaried tax payers are facing while filing their income tax returns. In this post we tell you why you get this error and the way around.

Error while filing ITR - amount disclosed in income chargeable under the head salaries is less than

Error while filing ITR – amount disclosed in income chargeable under the head salaries is less than 90% …

Why the Error?

This error occurs when your gross salary as reported by your employer in Form 26AS is higher than the one quoted by you from Form 16 while filing your tax return.

Your Form 26AS numbers matches with what is quoted in Form 16 – Part A by your employer. Below is a sample:

Form 16 Vs Form 26AS

Form 16 Vs Form 26AS

While filing the return online, the ITR Form automatically picks up data from Form 26AS. You can check the same in Tax Details tab >> Sch TDS 1 as shown below

Also Read: How to Pay 0 Income Tax on Rs 16 Lakh Salary? (FY 2018-19)

TDS 1 - Details of Tax deducted at Source from Salary

TDS 1 – Details of Tax deducted at Source from Salary

The above salary in the header “Income chargeable under salaries” is Gross salary (as can be seen in the Form 16 Part B below) but while filing your return, you need to put only your Net salary.

Learn: How to fill Salary details in ITR?

Net salary = Gross Salary – Tax Free Allowances

The error occurs when Net Salary is less than 90% of gross salary & you do not report the tax-free allowances in exempted income section of ITR

Like in this case the Gross Salary is Rs 15,86,610 and net salary is Rs 13,12,938. The percentage of Net to Gross salary is 83%. Since this is less than 90%, you get the error.

Gross Salary Vs Net Salary - Form 16

Gross Salary Vs Net Salary – Form 16

How to Correct the error?

The error is easy to correct. All you need to do is report your tax-free allowances in the exempt income section. This can be done as follows for ITR 1.

Go to Taxes Paid & Verification tab >> Exempt Income (For reporting purposes) >> fill (iv) others. As per the above Form 16, we have below 3 tax-free allowances

Tax Free Allowance in Salary

Tax Free Allowance in Salary

Also Read: 11 Tax Free Components You Must have in Salary

This is how we fill it in exempt allowance section:

Filling Exempt Allowance Section in ITR 1

Filling Exempt Allowance Section in ITR 1

If you notice there are several headers under exempt allowance, which you can choose as per your requirement. Below is the list of exempt allowances header in ITR 1.

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Exempt Allowances that are available for ITR 1

Exempt Allowances that are available for ITR 1

I hope this post would help you to understand and resolve the error in ITR “The amount of salary disclosed in Income details/Part BTI is less than 90% of Salary reported in Schedule TDS1”.

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32 thoughts on “Since the amount disclosed in income chargeable under the head salaries is less than 90% of Salary reported in TDS 1, please ensure to fill details in Others in Exempt Income

  1. because of this adjustment, It shows that I have to pay an extra tax because Gross salary is considered and tax free allowance is applied in exempt allowance..

  2. thanks a lot, really helped me lot..

  3. Thank you so much, works like a charm! Just one thing, it’s not accepting the ‘+’ symbol for Any Other.

  4. Hello Sir am not understanding some problems please can i contact you with a mobile number please contact me 9912945042 this my number other wise u can give a number i will call you sir please…

  5. thank you so much it helped me.

  6. Gourav Kumar Soni says:

    Hi Amit,

    I have donated $200 to CRY, USA & they given me receipt for it. It was wire transfer. On receipt it mentioned that under the 501(c)(3) section.
    Can I use this details in my ITR to get some TAX benefits?
    If yes, where should I mention it?

  7. Mohamed Kaamraan says:

    Awesome, I just used the method you described and it worked with no further issues. Just that I had to remove the special character “+” from Description section and replaced with “and” coz it was giving me error as “taxes paid invalid character(s) in input”

  8. Hi Amit,

    Thank you very much.
    it helped me a lot.

    Thanks.

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