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Case AQ - Company didnt consider benefit ...can i claim it while filing return ? Posted by - Vikas
Hi alman. I am following your videos for filing the Income tax return from two years. But this year i am having a type of problem.
My father works for a private firm and he has to submit his savings documents such as LIC reciepts, HRA reciepts etc to the company. My father submitted these to the company but they missed to include the HRA while tax computation and they had deducted the tax also. What i have to do make this HRA income exempt from tax???
Plz reply ASAP so that i can solve the problem.
Solution - By Amlan Dutta
Calculate it and take benefit of it while filing return ...it doesn't matter whether company has considered or not .... you can surely while filing return claim it ...if company has deducted more tax as a result, your father will be liable for a refund ...in ITR 1 , since you directly put income from salary , you will show income from salary considering this exempted HRA ( and if you use ITR 2 ...you can show it separately ...)i would use ITR 2
While filing return ITR 2 , calculate the HRA exemption and show accordingly the net income ...say company taxed salary income 100 Rs .without considering HRA exemption of 20 Rs ...you will now show taxable income as 80 Rs considering HRA exemption ...(in file you will keep receipts so that in case in future if assessing officer seeks assessment , you can show the rental receipts etc to arrive at the HRA figure )
Vikas - Do i have to submit receipts
Amlan - No
Vikas : Then how will department come to know
Amlan : What you are doing if filing return ...after return is filed , it enters assessment stage...only 1% of rerturns filed are picked by assessing officer for assessment ...at that stage if your case falls under scrutiny assessment , then the file in which you have kept the rental receipts and your HRA calculation needs to be substantiated to the assessing officer ...
