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.
