Difference in gross salary amount.

[wanna_bee]

Hi All ,

I'm planning to apply for HSMP this month from Bangalore, India.

Inspite of searching in this forum I'm not able to get a conclusive answer for my question:-

There is a difference in the gross earnings amount on my ITR and my payslips (adding up all months). This is due to deductions like phone bills..etc which need not come under gross earnings amount on my ITR as per Indian IT rules.

Now , what other evidence should I provide ?

I'm planning to give :-

1) Letter from company . It's a simple gross earnings statement with NO breakup.
2) Letter from my CA . It contains detailed breakup and explains why there is a difference in the amounts and clearly mentions the gross earning (payslip amount).
3) Bank statements.

Please tell me if this is ok ?

Regards,
wanna_bee

[Achtung]

Hey...


cud u please explain us what deductions are not shown in ITR(Form 16)...I believe the Gross Income should be clearly stated...and then the deductions are shown...Please elaborate...

[boyzzeal]

Dear member,

Yes, I experienced the same issue.

ITR reflects "Income from Salary" and not "Gross Earnings" as indicated in your Form16. However, you can continue to claim Gross Earnings as recorded in your Form16 as I understand that the caseworker is aware of the same.

Couple of things to be noted. Salaries/month add up to match the Form16 gross earnings. Netpay/month to reflect in the bank statements. Letter from the employer indicating gross earnings as mentioned in the Form16. These evidences are conclusive in determining your GrossEarnings.

However, playing safe just make a seperate covering letter for this section (with the help of CA but written by you) that why they should consider Form16 earnings and why the same not being reflected in SARAL and what is Income from Salary mean.

Hope this brings in some clarity.

Regards,
deeps

[wanna_bee]

Hi Guys,

Thanx for your responses.

I spent quite some time today studying my various documents. I found out a few things.

Firstly , the amount on my payslips , Form 16 and ITR are different ! This is because the meaning of "gross salary" is different for all 3.

For Form 16 "gross amount" is the company payslip gross minus petrol and phone bills , car insurance and other non-taxable income.

Form 16 and ITR are different this year because it's a new ITR form , it's no longer the SARAL form . In SARAL form we blindly used to copy the form 16 , but this new ITR form is more simpler , it just summerizes everything in brief. Details have to be supplied seprately.

So , the gross here is Form 16 gross minus HRA and Medical.

I hope this answers your questions , Achtung.

So you see "Salaries/month add up to match the Form16 gross earnings" does not hold good here. And I want them to consider my payslip amount because that is the highest. If I use my ITR amount , I'm out of this.

Now , I'm in a dilemma , what should I do ? Should I submit my Form 16 ?
Will a explaination by my CA explaining difference in ITR and payslips suffice ?

Anyone with this situation ? Please help.

[Achtung]

Ok! I understand your problem.

I think a letter from the employer stating everything in details and confirming your GROSS Earnings(as per your payslips) should do the trick.

I think if you can get the Letter from the employer explicitly stating the earnings and deductions you can do without the Form 16...

CA letter can also be a good secondary evidence....

I think the key will be how clearly you can express and prove your point to the caseworker....

This is my opinion not necessarily correct...Hope this helps you...

Hear from others...

[wanna_bee]

I got a letter from my employer , but its a simple one sentence letter, NO breakup. Getting a salary breakup letter will be difficult!

I read in the old caseworkers manuals about letter from employer , but there is no mention about breakup details. However it says for letter from CA there has to be a breakup detail present.

Therefore I deceided to get a letter from my CA with all salary breakup details. It's easier to get this .

what do you think ? will this work ?

[Achtung]

I know it is difficult to get such a detailed letter from the employer...

There is no real mention of CA's letter in the guidance doc...although as you rightly pointed out there is some mention in the internal caseworkers manual...

Ok I think it will be good to have the CA letter...and it will be good if you write a good detailed letter helping your case worker understand your case...you can take help of your CA...who can infact endorse your claims and statements...

Hope this helps you...