• How do I include Medical Reimbursement [section 17(2)] in salary breakup in ITR2

Hello,
I received a notice under section 143(1) citing income mismatch (for AY 2017-18). When I re-looked at my ITR2 that I had filed, I noticed that the only 2 missing things were Rs.2400 professional tax (which I had forgotten to include in my salary breakup) and Rs.7918 towards medical re-imbursement. The income mismatch was also exactly Rs.10318 (which is the sum of the two).
I understand I have to re-file my ITR2 again. When filing my original ITR2, I had missed adding the professional tax. This time, I will include it. However, in the salary breakup for ITR2, there is no placeholder for section 17(2), i.e., medical re-imbursement details. From my Form 16, this amount Rs.7918 falls under Perquisites exempted from tax.
In the Schedule S of ITR2, should the Value of Perquisites include this exempted amount or should it include only the taxable amount? If I include the entire amount (including the exempted amount), then I will end up having to pay tax for this as well. [Medical re-imbursements should be tax exempt until Rs.15000].
If the Medical Re-imbursements amount which is exempted is not included in the value of perquisites, then there will still be an income mismatch between Form 26AS and the salary details mentioned in ITR2. How do I fix this?
Please help me out.

Regards,
Vinay
Asked 4 months ago in Income Tax from Bangalore, Karnataka
Dear Vinay,

In A.Y. 2017-18, there is no separate column to disclose exempt amount. You should declare total GTI after deducting medical reimbursement figure and then deduct professional tax figure, after which there will not be any difference between Form 16 and your ITR. 

There are mimatches in Form 16 and 26AS as Form 26AS are sometimes based on Gross salary instead of taxable salary. Just ensure your ITR should match with Form 16.

You can share intimation u/s 143(1) along with original ITR and Form 16 on my email 

Thanks
Vivek Kumar Arora
CA, Delhi
1541 Answers
36 Consultations

5.0 on 5.0

Hi,

In this case, you have to disagree on the income tax portal and report the differences in the respective columns.

No need of filing the revised tax return.

Thanks
Damini
Damini Agarwal
CA, Bengaluru
269 Answers
13 Consultations

5.0 on 5.0

Hi Vinay,

You can show medical reimbursement under exempt allowance u/s 10.
Abhishek Dugar
CA, Mumbai
3569 Answers
158 Consultations

5.0 on 5.0

Hi Vinay

Schedule S shall not include the exempt perquisites. Perquisites exempt under section 10 needs to be shown separately.
Lakshita Bhandari
CA, Mumbai
2127 Answers
68 Consultations

5.0 on 5.0

Hi,
There is no need of filing the revised tax return. Just report the cause for the differences.

Regards,
Nikhil.
Nikhil Khanna
CA, Mumbai
1290 Answers
15 Consultations

5.0 on 5.0

You can fix it by declaring Gross Total Income after deducting these expense.As per my view No need to declare it separately.And for professional tax there is separate column.

Hope it help.
Swati Agrawal
CA, Indore
678 Answers
1 Consultation

5.0 on 5.0

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