Salary is the remuneration paid by the employer to the employee for the services rendered for a certain period of time.

Salary includes:

  • Basic Salary
  • Perquisites & Bonus
  • Gratuity
  • Allowances (such as HRA, LTA, etc.) 


Income from Salary is taxed at the applicable slab rate & is to be reported in ITR 1 when filing your Income Tax Return.



TABLE OF CONTENTS


Here's a complete guide on Income from Salary & Taxes.



Adding Salary using Form 16


Form 16 is a document that contains all of the information needed to declare salary income in an income tax return. It shows the salary income breakdown as well as the amount of TDS deducted by the employer.


Form 16 contains mainly comprises two parts:

  • Part A contains the details of the TDS deducted
  • Part B contains the details of break up of the salary


To add Salary using Form 16:


  • In the Filing tab, navigate to INCOMES > SALARY from the side nav
  • Click on Upload Form 16 
  • Click on Browse and upload Form 16 pdf file
  • On the next screen, you will see SALARY details





Note: 
Ensure that your Form 16 is:
    1. In a PDF Format, not exceeding 6 MB
    2. Both parts, A & B, should be generated from TRACES
Things to keep in mind while uploading Form 16




Adding Salary Manually


In case you haven't received Form 16, you can still report your salary using a salary slip.


To add Salary manually

  • In the Filing tab, navigate to INCOMES > SALARY from the side nav
  • Click on Enter Salary ManuallySALARY
  • Enter the Employer Details 
    • Employer Name
    • PAN
    • Category (choose "Other" if an employer is a non-government entity) 
    • Address
    • TDS details
  • Enter Salary Breakdown
    • Gross salary
    • Allowances
    • Deductions
  • Click on SAVE



Note:
1.The standard deduction is automatically added, once all the details have been entered. 
2. You can add multiple salary income by clicking on the ADD button.