Answer

1. F

   Facts

   Form 16 Part B shows gross salary and then the exempt allowances separately. If you entered salary after exemptions in one box, CPC sees a gap. The exemption is valid only if you are in the old regime and meet the HRA conditions.

2. P

   Provisions and law

   • Sec 143(1)(a) (now Sec 270(2))CPC can adjust the return for listed reasons, but must first tell you and consider a reply given within 30 days
   • Sec 10 (now Sec 11)Lists incomes that are exempt and not included in total income
   • Sec 192 (now Sec 392)Employer must deduct tax from salary at the average rate
3. A

   Analysis

   CPC compares gross salary in Form 16 with your return, so a net figure looks like under-reporting. If the HRA exemption is genuine and your employer simply did not allow it in Form 16, choose Disagree and explain the exemption with the amount and rent paid. Remember that HRA exemption is not allowed if you chose the new regime, and then the adjustment is correct. For example, salary of ₹12,00,000 in Form 16 with ₹1,80,000 HRA claimed only in the ITR will show a ₹1,80,000 variance.

4. C

   Conclusion

   1. 1Compare Form 16 Part B line by line with your salary schedule.
   2. 2Confirm you filed under the old regime.
   3. 3If the claim is genuine, Disagree and explain HRA with rent and city.
   4. 4Keep rent receipts, rent agreement and the landlord's PAN if rent exceeds ₹1 lakh.

If you filed under the new regime, HRA cannot be claimed and the adjustment should be accepted.

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