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Querist : Anonymous

Querist : Anonymous (Querist)

03 August 2013 Exemption amount Under Section 10 (HRA) is 20000 So please advice me whether to file ITR 1 or ITR 2

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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03 August 2013 You can file ITR 1. HRA Exemption is not treated as exempt income. It is a part of Income from Salary.

Ganeshbabu K

Ganeshbabu K (Expert)
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03 August 2013 dear sir,,

it was really confusing for me since begining some suggesting that ITR1 and some will be on ITR2

Words stated in Notification 34/2013 dated 01.05.2013 is

"if income not chargeable to tax " exceeds Rs.5000 we cannot use ITR1

So i came to conclusion that ITR2 is applicable in such cases

Ganeshbabu K

Ganeshbabu K (Expert)
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03 August 2013
Is it okay to do so..

actually i have done in one case like

1)salary-exempted hra=income chargeable under salaries

2)exempted hra shown in exempted income in "sheet EI"

even though in my firm ITR1 is following for such cases but i cannot able to agree with that and filed ITR2

whatever i guess it will be okay for me as

instead of ITR1 , ITR2 can be filied

But viceversa will create problem..
So i guess i am in safe path

Do clarify

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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03 August 2013 In my view exempted HRA is not rquired to be shown in exempted income. It is not an exempted income. You are getting deduction based on payment for HRA. It is a part of salary. We are required to show the amount chargeable under the head Income from Salaries after deduction all exempted allowances and the same not to be shown in exempted income sheet.

If we treat HRA and say travelling allowances as exempted income than almost everybody will have to file ITR 2.

Exepted income means Income like Interest on PPF, Dividend Income, Agricultural Income, Bank interest upto Rs 10000/- etc.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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03 August 2013 Yes when in doubt file ITR 2. Individual filing ITR 1 can file ITR 2 but person who are required to file ITR 2 can not file ITR 1.

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