hi hsmp0804,
I'm planning to include the below clarification in my covering letter:
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Clarifications on evidence for Previous Earnings from my work:
1) The income tax return form has been changed from this assessment year (Apr-2007) onwards. The earlier SARAL has been replaced by new Income Tax Return Forms and Acknowledgement form. (Ref.:
http://www.incometaxindia.gov.in/download_all.asp) On filing the Inocome Tax returns, we will get back only the Acknowledgement form as a proof.
2) The "Gross total income" on the tax return Acknowledgement form will be lesser than the actual gross income specified in the monthly wage slips since the above value in the tax return is arrived after excluding some allowances and taxes as shown below.
The following allowancs are excluded from the income for taxation:
a) Transport Allowance - INR 800.00 per month (INR 9600.00 for the year)
b) House Rent Allowance : Least of the following three amounts:
i) The amount equal to 50% of annual salary, for persons staying in Mumbai, Chennai, Calcutta or Delhi, but 40%, for others
ii) The actual amount of house rent allowance received
iii) The amount of rent actually paid in excess of 10% of annual salary
In my case, it was the third amount (INR xxx.xx).
c) Professional Tax - INR 200.00 per month (INR 2400.00 for the year)
Total excluded amount = INR xxx.xx
Total gross income for the year as in wage slips = INR xxx.xxx
The amount taken as "Gross total income" for tax return = INR xxx.xx - xxx.xx
= INR xxx.xx
Ref:
http://www.incometaxindia.gov.in/taxati ... _index.asp#
-> Chapter.2 Salary Income, Perquisites & Allowances
2.3 DEDUCTION FROM SALARY INCOME (Regarding Professional/Employment tax)
2.7 ALLOWANCES (Regarding House Rent Allowance and Transport Allowance)
3) I am also attaching the original "Form 16" which is a document generated by the employer for the purposes of an official return to the tax authority. This can also be considered as the 'Personal Tax Return' if the attached Acknowledgement form from the income tax authority is considered to be inadequate. The "Form 16" shows all the details of my gross earnings through salary and calculation of "Gross total income" which is specified in the tax return form (Income chargeable under the Head ‘Salaries’).
4) As an additional evidence to demonstrate my previous earnings, I am also attaching my bank statements showing the credited salary from my employer. Please note that this salary would be the "Net Salary" only after deducting the income tax, professional tax, loan EMI and my contributions towards other benefits.
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Thanks!
