This discussion addresses how to treat excess House Rent Allowance (HRA) recovered by an employer over 60 instalments, relating to payments made between 2013 and 2018. The individual has not claimed HRA benefits as they own their home, and tax was deducted during that period. The employer is deducting the recovered amount under 'sundry deduction', which doesn't impact tax calculations. The user seeks advice on how to claim tax deductions for this recovery and how to respond if the tax authorities inquire.
My employer (PSU) is deducting an amount (60 instalment started from this FY) towards excess House Rent Allowance (HRA) paid during the FY 2013-18 under head sundry deduction and not under HRA.
Sir, my question is, now how to treat this amount while filling income tax return. It is pertinent to mention here that I have not take any benefit of HRA as I have my own house and tax was deducted during that period.
Please reply so that I can get income tax deduction for the amount deducted during this FY as my employer is not deducting this HRA recovery from my current year HRA.
20 February 2022
Ask your employer to reduce the recovery from the current year HRA/salary and deduct TDS accordingly. In such a case deduction can be claimed
25 February 2022
Convince your employer to deduct TDS considering recovery. If not reduce the amount from your salary and file ITR upto 10% variation allowed.