05 February 2014
Husband & Wife Both is a Govt Employee. They continued earning HRA since their employment. Now they both have required to refund excess HRA drawn of Rs. 36000/- as per eligibility computation combined together. As a matter of fact, one assessee refunded the amount to Treasury by A/c payee cheque from her own a/c in full. Her current employer refused to adjust the said payment from the income of current FY. Hence, though her current year's income is low, she is forced to pay tax on 36000/- also which could have been avoided by lowering the income.
Pls advice whether she is eligible for the benifit and if yes, whether if full or for her own part of excess withdrawal.
05 February 2014
Full amount of 36000/- pertains from 2005-06 till 2012-13 which she returned in FY 2013-14. Please note that the amount is for both of them. Please revert.
CAclubindia
