IT returns

When you are a business man, you can claim all reasonable expenses incurred in connection with your business. As a salaried person, such expenses cannot be claimed. It is because your salary income will be computed by giving exemptions for HRA, LTA, PF and valuation of perquisites like company leased accommodation, conveyance, medical expenses. All these expenses are personal in nature but you still get benefit of exemption / deduction.

It is the responsibility of the employer to compute your tax liability and deduct tax accordingly. In this process, he can consider other incomes, apart from salary, as declared by you, except loss from business, capital gains etc. He can also consider the investments made by you and allow deductions u/s 80C etc. The employer thus acts more or less like a representative of Income Tax Department to determine your tax liability and deduct it from your salary. Hence, the filing of tax returns for salaried persons is normally simple.

You have to file return of Income in form no 1 and be done. It is true you cannot claim expenses against salary income except for rent for house occupied against HRA or deduction u/s 80GG.

Yes it is true that if you are having business then only the above expenditures can be claimed.

Since now you are salaried person you cannot claim all the above expenditure from your salary income.

Hi! First of all, the Form 16 has to be issued to you by your employer (the organisation). Your employer will deduct tax, if any payable by you, and issue the Form 16. Based on the Form 16 issued, you or your CA will file your income-tax return. So don't fret over the complicated Form 16! You will have to fill ITR-1.

In case your employer has not issued a Form 16 to you, based on your salary income, your income tax return can filed.

Secondly, it is true that salaried persons cannot claim the above expenses. You can save tax by way of those investments for tax deduction purpose. However, you do have certain tax benefits like conveyance (Rs. 1600 per month or Rs. 19,200 per annum), house rent allowance (HRA - based on your salary and rental expense), medical expenses (upto 15,000 per annum), etc.

In case your employer is not issuing a Form 16 to you, you may declare your income as "Income from Consultancy Services" and claim all the above expenses as earlier. However, in this case, your employer will have to necessarily show you as a professional instead of an employee.

Happy to help you, any further!