Confusion about period to consider for salary, rest income.

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I notice that my income for FY11-12 had been done based on gross salary from March2011-February2012 by my employer (under state govt). However my savings account and fixed deposit interest had been declared up to 31st March, 2012. In this case how should I calculate total income during FY11-12? Add salary for the period Mar11-Feb12 and other additions like interest for the period Apr11-Mar12? Second doubt: For which period should I claim HRA exemption (include or exclude March2012 rent paid amount)? In case I have to consider two different periods for net income as above, will I have to declare it in return to be filed? Thanks for suggestions.
Replies (3)

For the purpose of salary & interest on FD's only the income earned for the period April2011-March2012 should be considered for the purpose of tax calculation & filing the return of income.  

You might have received your form16 from your employer.  So take the income as per form16 & show it in the Excel utility.  If you have investments whihc were not declared to yoru employer for the period Apr11-Mar12, then you can consider them now while assessing your tax liability.  If yoiur employer has deducted any tax from your salary for the investments that wre not declared by you to your empoyer then you would be eligible to claim refund.

Regards the interest on bank FD's ensure that you have received your Form 16A from the bank if they have deducted any tax from the interest paid to you.  For this check with your bank if they have deducted tax & get the form 16A.  if the bank has deducted tax on the interest paid to you then also you need to disclose your interest income in your return.

In the TDS tab for Form16 part put the salary details & TDS as per form 16.  For the interest on FD's put the correct details in the Form 16A part.  Ensure to enter only the gross interst amt & the TDS.

Please feel free to ask any further questions.

In this case, the form-16 had been prepared on the basis of my gross salary for the period March2011-February2012. If I am to calculate my net salary for the FY11-12 then I'll have to modify what is given in form 16. I'll have to deduct the salary for March2011 and add salary for March2012. Is that what you mean to do?

Please enquire and ask teh reason why has your employer shown the salary for Mar11-Feb12 in your Form16. Income for the period Apr11-Mar12 only needs to be considered.


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