Arrears related to current year which includes basic+hra
This query is : Resolved
29 October 2009
Dear Sir/s,
My query is regarding HRA exemption on arrear of Salary (70 % basic+ 30% hra), here Arrears refer the amount of increment which announced in during middle of the year but effective from April(1st month) of Financial Year. The case is in Sep.09 month a company give increment of Rs. 11000/-p.m.(which includes 7700-basic+3300-hra) to a employee which effective from April'09 and company has paid 6 months arrear in Oct ’09 along with Sep'09 salary. Now I want to know can we get the benefit of amount of increase in hra from april to sep while calculating hra exemption. if yes or no, please provide any notification or circular from Income Tax Deptt, if any.
To understand the case a scenario given below:
In April to Sep salary is 33200(23240-basic,9960-hra) from oct it will be 44200(30940-basic, 13260-hra) arrear amt is 66000 (11000x6), rent p.m.16500/-
1. if we show two separate salary 33200(apr-sep) & 44200(oct -mar) +arrear 66000, then we will get hra exemption 139320/-
but
2. if we show only 44200/-(30940 -basic+13260-hra)from apr-march, then we will get more hra exemption i.e.159120/-
can we apply above no.2 ,is it correct?
regards
Tiwari
My query is regarding HRA exemption on arrear of Salary (70 % basic+ 30% hra), here Arrears refer the amount of increment which announced in during middle of the year but effective from April(1st month) of Financial Year. The case is in Sep.09 month a company give increment of Rs. 11000/-p.m.(which includes 7700-basic+3300-hra) to a employee which effective from April'09 and company has paid 6 months arrear in Oct ’09 along with Sep'09 salary. Now I want to know can we get the benefit of amount of increase in hra from april to sep while calculating hra exemption. if yes or no, please provide any notification or circular from Income Tax Deptt, if any.
To understand the case a scenario given below:
In April to Sep salary is 33200(23240-basic,9960-hra) from oct it will be 44200(30940-basic, 13260-hra) arrear amt is 66000 (11000x6), rent p.m.16500/-
1. if we show two separate salary 33200(apr-sep) & 44200(oct -mar) +arrear 66000, then we will get hra exemption 139320/-
but
2. if we show only 44200/-(30940 -basic+13260-hra)from apr-march, then we will get more hra exemption i.e.159120/-
can we apply above no.2 ,is it correct?
regards
Tiwari
UMA SHANKER SHARDA
(Expert)
14 November 2009
Yes, you can apply the 2nd provided the other conidtions for HRA exemption arefollowed.
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