29 January 2012
Employee has joined a company in mid of year i.e. 01/08/2011. He has submitted his Form 16 received from earlier employer to the new company.
Now Form 16 can be issued in various formats....some Form 16 does not gives the details of the various componants forming part of Salary i.e. it directly starts from Gross Salary and some Form 16 gives the complete details of Salary too....
Now although the employees was receiving HRA from the previous company, he had not claimed HRA Exemption there. Now he has submitted his Form 16 alongwith 12 months Rent Receipts and is also giving his Salary slips to the new company for claiming the HRA exemption for 12 months.
Can the new company consider this and give him the benifit for HRA exemption for the period the employee was not working with the company?????
The present employer will be required to deduct tax at source on the aggregate amount of salary (including salary received from former or other employer)after taking all deductions and exemptions present and past.
CAclubindia
