Changing basic and hra ratio while filling tax

POSTED BY saurabh kumar ON September 17, 2012 12:58 am COMMENTS (3)

While joining company I had put my major salary , component under basic head and  not had structured much into Hra component. Now I realized that company policy is that once defined I can never reduce My basic. So now even if I increase my hra , my tax outflow is huge due to my fixed high basic. Question is that now while filling tax return every year, in itr form can i fix it by reducing my basic and increasing my hra to fix this issue and get refund ? My form 16 also have this High basic amount causing a big tax outflow. Please help and advise if I can file this different basic amount than what my form 16 states.

3 replies on this article “Changing basic and hra ratio while filling tax”

  1. saurabh kumar says:

    Thanks for your response Ashal, but I am not talking about changing my Form 16 details. I am talking about the tax filing time, when I have to file ITR. That time can I file tax as per the Basic, which i originally “wanted” to declare in the company. In total my CTC would still be the same in total between my form 16 vs the ITR, but I am asking if I am bound in any way by the form 16 for life?

    1. Dear Saurabh, I’m explaining with an example. Say your current Basic & HRA are 12L & 80K respectively in your Form 16. Now for reporting purpose in ITR, you want to make it 10L basic & 2.8L HRA. My dear friend it’s not possible to change the income structure. Even if you are able to do so & nobody look into it, in case of scrutiny of your ITR, your fault ‘ll be catched & you w’d have to pay ab heavy penalty at that time.



  2. Dear Saurabh, a plain NO is the answer. You can not change your form 16 details.



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