Hra and conveyance allowance

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 August 2013 Form 16 shows the total amount paid to us. but when we are filling the IT return where do we show the deductions of HRA, Professional tax and conveyance allowance ? Can we deduct these amount from total salary and show the net amount in IT return?

Ganeshbabu K

Ganeshbabu K (Expert)
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16 August 2013 Yes you need to show net salary after deducting HRA&CONVEYEANCE in ITR1

you can also file ITR2 where you can disclose your exempt income HRA&CONVEYANCE in "sheet EI" in serial no. 5

Querist : Anonymous

Querist : Anonymous (Querist)

17 August 2013 When we are showing net salary (after deducting HRA and conveyance allowance) in IT return there will be a difference amount between form 16 and IT return. Will it make any tax liability in future ?

Ganeshbabu K

Ganeshbabu K (Expert)
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17 August 2013 1)that is is why it is recommended to file ITR2

2)even CBDT Mandatory to file ITR2 if income not chargeable to tax exceeds more than 5000 vide Notification 34/2013 dated 01.05.2013

3)So i always recommend to file ITR2

4)However even though you filed ITR1 you can come out of issue by providing Form16 and payslips and can explain to department that you have availed HRA exemption

to conclude i can say you can file ITR2 in stead of ITR1 but you cannot file ITR1 inplace of ITR2

So why dont you file ITR2 as i suggested above

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