House Rent

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vikas (Querist)
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15 January 2011 While preparing for online filing, I entered actual rent paid 72000 but the system allowed only 24000 as exempted limit and balance rent paid was not deducted

I am a salaried employee where I receive HRA (as per the salary slip) 10000/- per month, but, Form 16 provided to me does not show the bifurcation of salary.

I request to get informed that in the above case, what shall be claimable rent exemption and how

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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15 January 2011 can you provide the additional details , like monthly basic salary,
Place of living (home for which you are claiming the HRA benefit).

vikas

vikas (Querist)
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15 January 2011 Basic Salary : 20000
HRA : 10000
Conveyance : 800
Special Allowance : 9500

Placed at Project Site : Chittaurgarh (Raj)
Permanent Place : Lucknow (UP)

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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15 January 2011 so you can claim 8000/- per month as exempted HRA

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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15 January 2011 I think, you are trying to avail deduction u/s.80GG ( Which is available max Rs.2000 per month), As a Salaried employee you are eligble for HRA exemption, so only claim HRA exemption, Sec,80GG for only non salaried assessees

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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15 January 2011 Please read the tax calculation sheet carefully.

Rs. 24000/-, as you have mentioned, should be added as a taxable salary (Its not to be deducted)

So.. in form 16.. Rs. 24000/- must have been added (Not Deducted) as a taxable HRA receipt.

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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15 January 2011 Taxable HRA : (10000/- minus 8000/-)= 2000/- per month

vikas

vikas (Querist)
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15 January 2011 Subash JI

HRA Exemption to be claimed how in the Online filing mode and under which section, since I am using ITR 1 Form for filing

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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15 January 2011 in the ITR 1, you need not fill anything for HRA deduction.

only the Taxable salary (net of exempt HRA/conv. allowance/ medical reimbursement) need to be written.

So do your own internal calculation & put the only net taxable figure in the ITR.

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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15 January 2011 In the column 1 :
Income chargeable under the Head ‘Salaries’(Salary/ Pension)

write the above net figure.

vikas

vikas (Querist)
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15 January 2011 1. But, would the difference in Income from salaries mentioned in form 16 and income from salaries in ITR 1 shall not raise any question

2. I have filed the wrong return since I claimed exemption for rent paid u/s 80GG and can I revise the return now (the same was filed during Oct 2010) but refund order not generated till date

3. Would I be needing some documentary proofs since, I have paid rent in cash to the land lord

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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15 January 2011 1 > It does not matter whether the figure in ITR is different from Form 16 so long the figure is justified.

2 > Yes.. you can revise the return without any problem.

3.> Better to have Rent receipt / rent agreement for your own future record, just in case the AO asks for these at the time of final assessment. BUT YOU ARE NOT REQUIRED TO SUBMIT ANYTHING RIGHT NOW ...

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vikas

vikas (Querist)
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15 January 2011 Thanks for resolving my doubts and clarifying me on my queries and helping me

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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15 January 2011 ONE CORRECTION : Rent paid by you is only 72000/- (I thought it was 10000/- per month)

so in that case you can get HRA exemption : maximum upto 4000/- per month.

That is Rent paid minus 10 % of salary :

6000/- minus 2000/- = 4000/-.

Rest all of the above is ok.

Inconvenience is regretted.

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