diff --git a/hrms/hr/utils.py b/hrms/hr/utils.py
index af01d95111..c3fae61e33 100644
--- a/hrms/hr/utils.py
+++ b/hrms/hr/utils.py
@@ -542,17 +542,21 @@ def get_salary_assignments(employee, payroll_period):
 		order_by="from_date",
 	)
 
-	if not assignments:
+	if not assignments or getdate(assignments[0].from_date) > getdate(start_date):
 		# if no assignments found for the given period
-		# get the last one assigned before the period that is still active
-		assignments = frappe.get_all(
+		# or the latest assignment hast started in the middle of the period
+		# get the last one assigned before the period start date
+		past_assignment = frappe.get_all(
 			"Salary Structure Assignment",
-			filters={"employee": employee, "docstatus": 1, "from_date": ["<=", start_date]},
+			filters={"employee": employee, "docstatus": 1, "from_date": ["<", start_date]},
 			fields=["*"],
 			order_by="from_date desc",
 			limit=1,
 		)
 
+		if past_assignment:
+			assignments = past_assignment + assignments
+
 	return assignments
 
 
diff --git a/hrms/payroll/doctype/employee_tax_exemption_declaration/test_employee_tax_exemption_declaration.py b/hrms/payroll/doctype/employee_tax_exemption_declaration/test_employee_tax_exemption_declaration.py
index ac6175ae4d..e0e7036b73 100644
--- a/hrms/payroll/doctype/employee_tax_exemption_declaration/test_employee_tax_exemption_declaration.py
+++ b/hrms/payroll/doctype/employee_tax_exemption_declaration/test_employee_tax_exemption_declaration.py
@@ -349,6 +349,7 @@ def test_india_hra_exemption_with_multiple_assignments(self):
 		)
 
 		# salary structure with base 50000, HRA 3000
+		# effective from 3 months before payroll period
 		make_salary_structure(
 			"Monthly Structure for HRA Exemption 1",
 			"Monthly",
@@ -356,7 +357,7 @@ def test_india_hra_exemption_with_multiple_assignments(self):
 			company="_Test Company",
 			currency="INR",
 			payroll_period=payroll_period.name,
-			from_date=payroll_period.start_date,
+			from_date=add_months(payroll_period.start_date, -3),
 		)
 
 		# salary structure with base 70000, HRA = base * 0.2 = 14000
@@ -379,6 +380,7 @@ def test_india_hra_exemption_with_multiple_assignments(self):
 
 		salary_structure.submit()
 
+		# effective from 6 months after payroll period
 		create_salary_structure_assignment(
 			employee,
 			salary_structure.name,
diff --git a/hrms/regional/india/setup.py b/hrms/regional/india/setup.py
index e2ebbb55cc..f7674634ac 100644
--- a/hrms/regional/india/setup.py
+++ b/hrms/regional/india/setup.py
@@ -84,7 +84,7 @@ def get_custom_fields():
 				"fieldname": "hra_section",
 				"label": "HRA Settings",
 				"fieldtype": "Section Break",
-				"insert_after": "asset_received_but_not_billed",
+				"insert_after": "default_payroll_payable_account",
 				"collapsible": 1,
 			},
 			{