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Former Member
Dec 12, 2013 at 08:06 AM

Exemption inconsistency due to Reversal of Allowance


Dear Experts,

We have paid Allowance (Rs 1,50,000) through IT0015 and respective exemption(50,000) maintained in IT0582 in March'13.

In next month i.e. in Aug'13 employee was discharged, so the allowance paid in March needs to be reverted.

To do recovery:

1) -ve entry of Allowance in IT0015 was made in Aug

which gives following result:

Allowance gets reverted i.e. -1,50,000.00 but exemption u/s 10 comes as -1,50,000.00. (Expected exemption is -50,000.00)

2) if -ve entry of allowance made in IT0014 for 01.03.2013 to 31.03.2013 (i.e. for March'13)

then Allowance get recovered as -1,50,000.00 and exemption entry comes as -50,000.00 but tat is not getting considered in total taxable income calculation.

Please suggest how to do recovery so that allowance and exemption should get reverted.