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Anil Rego |340 Answers |Ask -Follow

Financial Planner - Answered on Dec 15, 2021

Anil Rego is the founder of Right Horizons, a financial and wealth management firm. He has 20 years of experience in the field of personal finance.
He’s an expert in income tax and wealth management.
He has completed his CFA/MBA from the ICFAI Business School.... more

Question by Amiya on Dec 15, 2021Hindi

I am a service holder and receive a monthly salary from my employer.

In FY 2020-2021, the payment of salary was irregular.

Till date, I have received salary for 11 months.

The salary last received was on 13.08.2021 for the month of January and February 2021.

Taxes were deducted at source before payment.

Tax deducted for nine months (April 20 to December 20) were duly deposited and reflected in Form 26AS and Part A of the Provisional Form 16.

Taxes were deducted from the salary of January and February 2021 but not yet visible in 26AS or Part A (provisional) of Form 16.

In the meantime, Part B of Form 16 for the year 2021-22 AY, last updated on July 23, 2021, has been officially handed over to me by the employer which shows 'Salary as per provision contained in section 17(i); as salary for 12 months.

Other figures in that statement including tax calculation are based on 12 months' salary.

I sought clarification in this regard from my employer but nothing is informed.

Under the circumstances, can you kindly advise whether my I-T return for FY 2020-2021 (2021-2022 AY) is to be submitted based on nine months's pay, 11 months's pay or 12 months's pay.

Ans: In a financial year the following are taxable under salary:

Amount received as salary in FY
Amount due as salary in FY, whether received or not
Any arrears of salary received (if not taxed in previous FY)

If the TDS is not confirmed in 26AS, that means the employer has deducted taxes while paying you the salary but has not deposited the same with the I-T department.

You need to keep your salary slips, bank statements and Form 16 carefully and submit it as proof, if required.

You can continue to pursue your employer for payment of the additional month's salary that has not been received by you.

Ideally, you can file returns for 12 months, as per the Form 16 provided to you.

Finally, if your issue is not resolved and your 26AS continues to not show the TDS, you can write a detailed mail with backups to the assessing officer and keep it as proof.

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.

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Anil Rego |340 Answers |Ask -Follow

Financial Planner - Answered on Nov 27, 2020

Question by Satish - Nov 27, 2020Hindi

I want to ask that I joined the present service on 10-07-2019, but got salary from July 19 to March 20 in the month of May 20. Now tell me while filling ITR Return what should I do? I have to show my salary in present ITR Return or in Next year ITR.

Ans: As per the income tax laws, you need to pay tax on salary even if it is not actually received in the financial year.However, it is good to talk to the company and understand how they are recognizing it.

Ideally, the company should also recognize the income in the last year and deduct the TDS for the last year.Accordingly, it should show up in the 26AS statement for last year and you need to file your return on this basis.

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Mihir Tanna |801 Answers |Ask -Follow

Tax Expert - Answered on Sep 29, 2022

Question by Durga - Sep 29, 2022Hindi

Dear Mr Tanna, Before soliciting your sincere opinion I must first congratulate and compliment you for the benevolent job being done to alleviate the problems being faced by the solo taxpayers from the pounce of the IT Office. I would request you to go through my problem which is very much exhaustive and moreover disheartening for the busy people like you. I am a retd employee from LIC in the FY 2020/21. In FY 2021/22 I had received arrears of salary along with commutation of pension and leave encashment. The employer while finalizing the IT for 2021/22 had deducted IT giving the exemption for comm pension, 80CC and 80D without the benefit under sec 89. While filing IT I could see the effect of AIS. Without any further deduction except under 80 TTB, I tried to confirm the Total Taxable Income as per 26AS/AIS. The self-assessed tax was to be paid on three dates because of the ATM limit etc. The last payment which was on 28th July, could not be successful and was debited on 29th as a result I could not add the CIN No etc., on the Add box of tax payment. Since the total amount of tax was paid before the last date i.e 31st I did submit a short paid ITR presuming it would be taken care of. On 1st Aug I received a message under sec 143 with a demand due for 4660/. The e-file status was showing the ITR is under process with O/S demand Nil (four Green tick was displayed). Till Aug 30th when I found the ITR is not accepted despite the grievances as cited above, again I paid the balance amount going thru the demand due option, there also I faced the same problem from bank. The amount could be debited on 31St Aug. I did pay the amount thinking the ITR and tax deposit are different Module. Moreover after filing ITR I made a query with the ITO regarding exemption of Transfer grant which should have been allowed at source. They denied it under pretext that no further exemption after filling. In order to see the last payment due appear under SAT head I had submitted a grievance which was not seen till I spoke to the help desk. One reply came with so many tags to file revised IT under section 131 (5). While I visited for re-file, I could see the interest amount along with an increased taxable income thus returned back. Now my questions are: 1. How the taxable income would vary when a letter under 143 is issued with a demand? 2. If I am to re-submit the ITR under Sec 131 (5) can I restrict the taxable income to the earlier one? 3. Can they alter the taxable income when Sec 143 is invoked? 4. Finally, should I conform to the query or wait till they make their earlier demand set right. Sir I had filled it by myself without the help of a professional. Your opinion would be mostly an antidote against the IT virus that has made me upset. Eagerly awaiting your reply.

Ans: Thank you so much for your compliment. Looking at your facts, I wish you could have got professional advice on 1^st August itself. My views on your queries are as follows:

I understand you are using online feature of filing Income Tax Return at www.incometax.gov.in wherein data is prefilled based on information reported by different persons (like employer for salary, bank for interest income, company for dividend income, TDS deductor for TDS deducted and amount of income credited, etc.). In your case, it might be possible that reportable entity has revised its data for reporting to income tax department and accordingly amount appearing in intimation issued u/s 143(1) differs from amount auto populated while filing income tax return u/s 139(5) of Income Tax Act using online feature.

It is not advisable to restrict auto populated income unless income auto populated at e-filing portal is incorrect. Check AIS for income auto populated at e-filing portal. If income appearing in AIS is incorrect, you can file feedback for AIS and offer actual income to tax while filing return u/s 139(5) of the act which allow tax payer to revise return by rectifying mistakes.

Yes, income tax provides updated figure at portal even if intimation is issued u/s 143(1) of the Act, as revised figures is provided by the payer of income or person authorised as reportable entity.

I understand you are talking about self-assessment tax paid by you and not auto populated in relevant schedule of ITR. Reason for the same can be wrong selection of year or code while making payment or while uploading challan details by the bank. Please check 26AS for self-assessment tax paid, if the same is not appearing in 26AS of AY 2022-23, you have to discuss said issue with Jurisdictional officer.