No HRA exemption, if you stay in your home

I had filed my original returns before due date. I had claimed that a business loss of Rs 3.5 lakh be carried forward to the subsequent years. But later I filed a revised return to increase the loss to Rs 4 lakh. I have now received a notice U/s 154 proposing to rectify the mistake in the order and stating that I will be eligible to carry forward only Rs 3.5 lakh. Please clarify whether I will be eligible to carry forward the loss of Rs 3.5 lakh or Rs 4 lakh
Suresh kulkarni
Via email

If a business loss is incurred, it will be carried forward only if the return is filed within the due date stipulated U/s 139(1). A loss return can also be revised under section 139(5). The enhanced loss claimed by you through the revised return can be carried forward and set off against the business income within a period of eight assessing years immediately succeeding the assessment year in which the loss is first computed. However, if there is any mistake in the loss as claimed by you, which is reduced by the assessing officer in assessment proceedings, only such reduced loss can be carried forward. In your case, it is not clear whether there is any such mistake in the claim made by you. However, it may be stated that the assessing officer cannot deny the benefit of carry forward of loss to the extent of Rs 50,000 merely because such enhanced claim has been made through furnishing a revised return.

I left my job on March 31, 2010 and filed my returns for 2009-10. From April 2010, I started working in Canada and the tax was deducted by the employer according to the Canadaian norms. Please advise if I still need to file returns for records purpose for 2010-11. I do not have any additional source of income.
Via E-mail:
Sandeep Reddy

An individual is said to be a resident of India in any previous year if he fulfills any one of the following conditions —
i) He is in India in that year for a period or periods amounting in all to 182 days or more; or
ii) He is in India for a period or periods amounting in all to 60 day or more during the previous year and 365 days or more during the four years preceding that previous year.

However, your case falls under exception to the general rule. When an individual goes abroad for purposes of employment, he shall be regarded as non-resident if his stay in India does not exceed 181 days during that financial year. Since your status is that of a non-resident, it is not mandatory for you to file your return of income in India for 2011-12

I am residing in my house but my wife and children are staying in another town in a rented house. Can I claim HRA in my I-T returns.
Via E-mail
Abdul Wahab

Since you are residing in a self-occupied house, you will not be eligible to claim exemption towards house rent allowance (HRA) on rented house in another town used by your family.

Kamal Rathi is a chartered accountant, representing Rathi & Malani, a Hyderabadbased
accounting firm. Readers can mail their queries on income tax to kamalrathi.ca@gmail.com [1]