Yes, but it is Alice wallet.
Assuming you are Alice, you were sent 1 BTC. You sent 0.4 BTC to Bob, the 0.4 BTC output you sent to Bob will becoming input for Bob and Bob will be able to spend from it. But not only that, the remaining 0.6 BTC will be sent back to change address generated on your wallet which is what you are referring to. Anytime you want to spend again, you can spend the change address utxo.
It won't become input if you receive a change in your wallet it would be still an output or we can call it (Unspent transaction output)UTXO.
It only becomes inputs if you make a transaction just like what you see on the image above as a sample.