27 December 2013
ASSESSE HAVE WORKED 1ST HALF IN OTHER COMPANY AND 2ND HALF IN OTHER COMPANY BOTH THE COMPANY IN FORM 16 GIVEN DEDUCTION U/S 80C RS.1,00,000/- EACH AND TOTAL DEDUCTION ASSESSEE GET RS. 2,00,000 WHAT IS LAW SAY AND IS THIS CORRECT ?
27 December 2013
The maximum deduction which an assessee can get u/s 80C is 1 Lakh. . Merely mentioning it in Form 16 of the Employers does not make it valid, because Form 16 depends on the details provided by the assessee. . Hence you can take a maximum of RS. 1 lakh as deduction u/s 80C.
Also you will be entitle for Rs. 200000 standard deduction only once even though both companies would have granted you the same.
You have to add total taxable income from both the companies then deduct Ch. VI-A deduction u/s 80 C then deduct Rs. 2 lakh deduction for maximum income not taxable & calculate Tax payable by you.
If tds deducted by both the companies is more than Tax payable you will be eligible for refund as you will be required to pay balance tax before filing of ITR.
CAclubindia
