Confused About 26AS and ITR-1? How to Handle HRA and Conveyance Allowance Discrepancies

On my 26AS form, I can see that the employer has marked all the amounts transferred to my account as 'Total amount paid' and didn't deduct the HRA and conveyance allowance (₹800). However, TDS calculations are correct.

Now, my query is: in ITR-1 under 'Income from salary,' we only mention the amount after deducting HRA and CA. Will it cause any issue? Or should I only be concerned about matching TDS between 26AS and ITR-1?

Employers are supposed to deduct TDS on what they pay you. You have to provide your details to the employer, like LIC, MF, etc., to lower your total taxable salary.

If you believe that HRA and transport allowances are not deducted, you can always deduct them and then file your return to ask for a refund.

I also have the same query; however, the above response doesn't address it. The problem is that Form 26AS shows "total amount credited," in which my employer has put the total gross salary (without deducting house rent paid). However, the income tax return has "income under the head salary," which is (total gross salary - house rent paid). Hence, the salary amount in Form 26AS is higher than what we show in the ITR. Is it intended by the IT department that way, or is it a mistake by the employer to put the gross salary amount instead of (salary - house rent paid)?

When the TDS returns are filed, they are required to give the total amount credited to the expense head/person and the amount of TDS. The total amount credited to you is the gross salary, so it is correct. They cannot show excluding HRA as it will then not match with their financial and payroll records.