Itr2 return issue with u/s 10 exception, received cpc notice

There are many points regarding your return on which clarification is to be required from you.

1. Old HP is referred here as A and new HP as B. You were already having self occupied property A or was it gifted to you by anybody this year?

2. If A was already been with you or gifted to you earlier then why was it not incorporated in earlier itrs?

3. Did you have any loan on your house A? Reason behind asking is why was it not claimed in previous years?  If loan belongs to property B only then its OK.

4. Were you staying in the same house property for the given fy, which you have declared in itr2 ? If yes, then you cannot claim hra exemption. If no, then were you living in rented accommodation. If no, then also you cannot claim hra exemption and entire hra recd will be taxable.

5. You can claim interest on housing loan and hra exemption both only when owned house could not be occupied due to commutation problem, I.e the house is located too far from the office that travelling from one place to another is difficult. Eg Owned house is in Mumbai and workplace is in Bangalore. Also the placed where assessee is residing is a rented accommodation and pays rent to the owner.

6. The loss claimed in the itr also does not tally with the intimation and form 16. 

if the situation is that which I have mentioned in pt 5., then you can go for demand disagree and apply for rectification u/s 154. But if it is not that case, then the demand raised is correct

Thanks for reply, here is clarification : There is no issue with property transaction. Only issue is there with ITR 2 on u/s 10 exception no computed in gross salary as net income.. I am claiming both HRA and Home loan benefits as house was in different city from past so many years. I am living in rented accomodation.

I know that there is no issue in property transaction but there is a problem in wrong reporting of itr until now. You said that you had HP from past many years then in that case you should be filing itr 2 instead of itr 1.

And is your new HP in the same place where you have been working. Then also hra cannot be claimed.

The reason for hra claim not accepted, that I have already told you in earlier post as well as in this post. If that is the possibility then you can go for demand not accepted. And go for rectification u/s 154 in the incometax efiling portal itself under my account tab. 

In s.no 1 salary excluding all exemption  --> so instead of 1627935 you should write 1359135

[1627935 -268800].  since ur form 16 is generated by traces this info is availble to CPC.

Rectification includes gross/net salary issues.

File rectification and say change in data.  Give correct salary figs

@ S.Shiroor:

Hra exemption cannot be availed if the house is situated in same/nearby location where his workplace is, even if the salary certificate has exemption given. 

For clarification to my above post, House here I mean owned house and not rented house. 

He is staying in rented accomodation in different city. 

Most probably CPC may send the rectification rights to Jurisdiction AO . In such a case he has to produce xerox copy of rent receipts to AO. 

I am talking with reference to new house. The details of it are not provided. Neither any clarification regarding the houses purchased and sell have been made as regards hra has been availed for the period of which old house belonged to him or new house or both. And new house is situated in some other city or so. 

Despite rent paid, if hra exemption is claimed for the period of new house if such new house is situated near the workplace, hra exemption cannot be availed. 

If new house is also situated in other city then hra exemption can be availed and rectification request u/s 154 can be made, which I have already mentioned in my earlier posts