arrear of lease accomodation

[pankaj kumar]

one of the employee working in my company has applied for lease accommodation in the financial year 2013-14 but competent authority has not sanctioned it in that year, later on it was sanctioned in feb2015 and arrear of 180000(difference between HRA received for the year 2013-14 and eligibility of lease accommodation) has been paid to him in the month of FEB-2015. For year 2013-14 his TDS on salary is calculated on the basis of HRA received by him then how to treat 180000 in this year ,whether he is eligible for Relief under 89(1),whether this arrear affect TDS for the year 2014-15one of the employee working in my company has applied for lease accommodation in the financial year 2013-14 but competent authority has not sanctioned it in that year, later on it was sanctioned in feb2015 and arrear of 180000(difference between HRA received for the year 2013-14 and eligibility of lease accommodation) has been paid to him in the month of FEB-2015. For year 2013-14 his TDS on salary is calculated on the basis of HRA received by him then how to treat 180000 in this year ,whether he is eligible for Relief under 89(1),whether this arrear affect TDS for the year 2014-15

AI Summary

Employee Seeks Tax Relief on Lease Accommodation Arrear Paid in 2015; Impact on TDS Under Section 89(1) Explored. An employee applied for lease accommodation in the financial year 2013-14, but it was not sanctioned until February 2015. Consequently, an arrear of 180,000, representing the difference between the House Rent Allowance (HRA) received and the lease accommodation eligibility for 2013-14, was paid in February 2015. The query concerns how to treat this arrear for tax purposes, specifically whether the employee is eligible for relief under Section 89(1) of the Income Tax Act and how this arrear affects the Tax Deducted at Source (TDS) for the year 2014-15.