1. Salary

You should be able to find it in Part B of form 16. If the break up is not clear, refer your payslip. The 'salary amount' will include basic salary/wages, annuity/pension, gratuity, advance salary, encashment of leave, fees, commission, etc.

It will not include profit in lieu of salary, perquisites, and all allowances. Calculate the amount accordingly.

2. Allowances not exempt

Part B of your Form 16 provides you tax-exempt information, so you will need to compute allowances that are not tax-exempt from your payslips.

Each allowance is taxed differently, some fully taxed, some partially. HRA, for example, is partially tax-exempt if you live in a rented place. Special allowances, on the other hand, are fully taxable.

For allowances exempt from tax, find the details under 'Taxes Paid and Verification' in point 2 of part B of your Form 16.

Transport allowance up to Rs 19,200 is exempt from tax for the FY 2017-18 (for which you will be filing tax).

3. Value of perquisites

Apart from salaries if your employer provides benefits like rent-free accommodation, car for personal/official use, ESOPs, sweat equity shares, etc., these are perquisites.

Part B of your Form 16 will have a heading "value of perquisites" for perquisites that are taxable. Medical reimbursements are also considered perquisites. It is tax-exempt up to Rs 15,000 if medical bills are submitted to the employer.

Note that in the next year, transport allowance and medical reimbursements will be completely taxable but you will be entitled to a standard deduction of Rs 40,000.

4. Profits in lieu of salary

This includes anything you receive in addition to salary like voluntary retirement amount, retrenchment compensation, employer's contribution to PF in excess of 12 percent of salary, interest received from a recognized PF in excess of 9.5 percent in a year, joining bonus or payments received after cessation from employment.

You will find your taxable amount under the head "profits in lieu of salary under section 17(3)" in Part B of your Form 16.

5. Deductions under section 16:

These deductions are allowed only on salary income. These are provided on: entertainment allowance and tax on employment.

Entertainment allowance-which is exempt only for government employees-is exempt from tax on the amount that makes for the least of the following:

• Rs 5,000
• Actual amount received
• One-fifth of the salary excluding allowance and perquisites

Employment tax or professional tax that you may have paid to the state government, deductions can be claimed. Find the amount under the head 'deduction' of part B of Form 16.