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    Answers of our readers queries related with various tax issues

    Synopsis

    While filing return of income, the employee can claim the credit for TDS on salary based on the data/documents available with him.

    ET Bureau
    By Dilip Lakhani

    I could not withdraw form 15H submitted in April 2015 from a bank. Around Rs 33,000 TDS (Tax Deducted at Source) has been deducted by other banks. My I-T (Income Tax) liability works out to Rs 12,500 taking into account deductions under section 80C (which means a refund Rs 21,500). I’m 71. What should I do? (DEVENDRA YAMDAGNI)

    I understand that due to failure in submitting the form 15H, the banks have deducted TDS of Rs 33,000. You can file your return of income declaring total income and claiming the deductions under section 80C, credit for TDS and claim the refund. The tax having been already deducted by the banks, the only option with you is to file the return of income and claim the refund.

    I took retirement at the age of 61 years in May 2015. I received my full and final salary, along with leave encashment, gratuity and 30 years of accumulated PF. I receive interest on tax free bond investments. Which form should I use to file tax return, and how do I show all the above receipts in my return?

    You will have to file your return of income in ITR 1 for AY2016-17. Amount received in respect of final salary, leave encashment and gratuity are to be shown in Part B against row B1 - Income from Salary/Pension. Amount received in respect of accumulated balance of PF and interest on tax free bonds is to be shown in Part D against row D20 - Exempt Income only for Reporting Purpose.

    If an employer deducts tax from employee salary, but does not deposit with the I-T department and also does not issue Form 16, how can the employee file his annual returns and what should he or she do in case tax authorities send notices? Is there a notification/ruling which protects such employees?

    With regards to the non-payment of TDS, employee can complain about this to the TDS Officer having jurisdiction over the employer and employee. He can also make a complaint to the Commissioner of Income Tax (TDS). They will take appropriate action as their revenue is affected by employer not depositing the TDS. While filing return of income, the employee can claim the credit for TDS on salary based on the data/documents available with him. However, at the initial stage the I-T department may not entertain the claim of the credit for TDS on salary.

    *Senior Chartered Accountant

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