Dear Sir,
I want to know tax treatment of HRA Arrear of previous years, Received in current year.
Employer is deductiong tax on whole arrear amount by applicable tax rate.
My question is cant we consider the exemption of section 10(13A) on this Arrear amount and Section 89 relief for differance of tax rates and tax liablity?
If the employee had received this amount in the related previous, he had not to pay any tax on this amount as his rent paid is more than the HRA received amont. by this he is loosing Bank interest on this amount as well as he has to pay tax on this amount in this current year.double loss.
plz suggess urgently .
CAclubindia
