While reading an online document, I came across information stating that if your earnings exceed INR 50 lakh after subtracting deductions, you are required to fill out schedule AL. For instance, if an individual earns 60 lakhs and utilizes tax-saving options such as HRA, 80C, and company tax benefits (such as food and gadgets), I’m curious about how net income is calculated and what deductions are taken into account. Additionally, I would like to know if this applies to individuals in job-class positions as well.
Hi @sahilwiz345
Your understanding is correct, if the net income of an individual exceeds ₹50 lakhs, he/she must mandatorily file Schedule AL.
The schedule AL must be filed by taxpayers filing ITR-2, including taxpayers with income (even if only salary income) above ₹50 lakhs.
The person can claim all the Chapter VI-A deductions assuming he is opting for the old regime.
Read more about Who should file Schedule AL in ITR?- Learn by Quicko for your reference.
Hope this helps.
Hi @sahilwiz345
No, LTA is not covered under chapter VI-A deductions. It is an allowance as a part of your salary income.