Does hra correction in filing attract interest as penalty

ITR 631 views 5 replies

Rahul Sinha

Team Lead

44 Points Joined February 2011

My employer did an incorrect HRA calculation putting exemption as 272305. The correct exemption is 31920. I discovered the mistake just last week. I'm told that this correction can be done during filing by increasing the salary by the difference of the numbers above. When I do so, the ITR calculation puts a Rs. 3000 under 234B and Rs. 2769 under 234C. If I accept those entries, for no fault of mine I will have to pay a penalty of 5769. Thankfully, the fields are editable, hence this post on forum - Can I edit the fields to 0 value? Once calculated, I intend to remit the difference in tax Rs.74281 (in ITR I'm entering this amount under Schedule IT as self assessment tax with pay date of 14 Jul 2014 but still the penalties are showing up on recalculation)

Pls suggest and share your views!

Thanks in advance,

Rahul

Replies (5)

Tribhuvan Aditya Singh

Student as well as Self-employed

3710 Points Joined September 2007

you are reqd to pay intt of 234b & c.... if you dont pay it now then later you will be receiving demand notice from dept. asking you to pay that amt. so its better you pay it now.

Rahul Sinha

Team Lead

44 Points Joined February 2011

In that case will I be better off by not raising the issue. It should have been TDS thus employer's mistake. If at all it arises I can cite that I had submitted the correct proofs and that calculation mistake was in Form-16 thus penalty should go to employer.

Tribhuvan Aditya Singh

Student as well as Self-employed

3710 Points Joined September 2007

you can do one more thing.... ask your employer to revise its tds return with correct calculations amd deposit the diff amt... after that you will receive revised form 16 and then you can file your return accordingly....

Rahul Sinha

Team Lead

44 Points Joined February 2011

I had done that and they pressured me to do correction in "salary" of ITR. Now that I see penalty, I need to talk to them again. Thanks for the advice!

BTW, is there no way that the correction can be done in ITR?

Tribhuvan Aditya Singh

Student as well as Self-employed

3710 Points Joined September 2007

you can correct figures in your itr... but then you will have to pay that intt amt, no ther way to escape... if correction done by employer then this intt liab. will get shifted to them... someone has got to pay this amt... it is either the employer or its you..