TDS DEDUCTED AGAINST SALARY BUT EMPLOYMENT CONTRACT GOT CANCELLED.
This query is : Resolved
11 June 2022
Sirs,
I have been given signing bonus(advance) for Rs.5 Lacs before entering into an employment contract with a company and they deducted TDS @30% and credited the bal. amount to me. Now due to other issues I cancelled the contract and they agreed to it but they insist to pay back total 5 Lacs and requested me to claim refund as it will be reflected in the 26AS.
Kindly confirm whether they can adjust the TDS thus deducted or get refund of the same as the contract got cancelled. If I go for refund I will loose money as my income is exceeded by 5L in salary. What best the company can do the avoid this situation and what I should do.
Kindly advise.
Prasanna
I have been given signing bonus(advance) for Rs.5 Lacs before entering into an employment contract with a company and they deducted TDS @30% and credited the bal. amount to me. Now due to other issues I cancelled the contract and they agreed to it but they insist to pay back total 5 Lacs and requested me to claim refund as it will be reflected in the 26AS.
Kindly confirm whether they can adjust the TDS thus deducted or get refund of the same as the contract got cancelled. If I go for refund I will loose money as my income is exceeded by 5L in salary. What best the company can do the avoid this situation and what I should do.
Kindly advise.
Prasanna
11 June 2022
The best option is you refund the money you received. The company can revise their TDS return and the amount can be adjusted in future TDS payment.
11 June 2022
Ask them to revise the TDS return and delete your bonus entry from their accounts by doing the reversal. They can adjust the TDS with any other entry.
In this way, you will neither show any bonus income nor will claim the TDS.
In this way, you will neither show any bonus income nor will claim the TDS.
16 June 2022
Dear Sirs,
The company strictly confirmed that they will not revise the TDS and will not do any adjustments and informed that if the TDS thus deducted is not refunded they will go for swift legal action.
For the information I have accepted their offer letter and a contract letter where I agreed to refund the entire amount of advance salary(bonus) if not joining by 30th May, however the total amount received is only after deducting the TDS which is now refunded. Also I have not yet signed the employment contract with them and there is not employee-employer relationship. They deducted Rs.171600/ being the TDS for the advance amount of Rs.5 Lacs & do not know what percentage they deducted it. In this situation can I file the ITR for FY2022-23 without mentioning the addl. income of 5 Lacs and to prove to the AO/IT(when they issues the notice) that the payment received is returned as the employment contract is cancelled mutually and the total received fund(5Lacs) is returned. What documents from the company is required for this purpose, should I inform them that the amount(TDS) will be refunded once the amount get credited in 26AS. Thanks for your kind answer.
Prasanna
The company strictly confirmed that they will not revise the TDS and will not do any adjustments and informed that if the TDS thus deducted is not refunded they will go for swift legal action.
For the information I have accepted their offer letter and a contract letter where I agreed to refund the entire amount of advance salary(bonus) if not joining by 30th May, however the total amount received is only after deducting the TDS which is now refunded. Also I have not yet signed the employment contract with them and there is not employee-employer relationship. They deducted Rs.171600/ being the TDS for the advance amount of Rs.5 Lacs & do not know what percentage they deducted it. In this situation can I file the ITR for FY2022-23 without mentioning the addl. income of 5 Lacs and to prove to the AO/IT(when they issues the notice) that the payment received is returned as the employment contract is cancelled mutually and the total received fund(5Lacs) is returned. What documents from the company is required for this purpose, should I inform them that the amount(TDS) will be refunded once the amount get credited in 26AS. Thanks for your kind answer.
Prasanna
16 June 2022
No legal action can be taken against you as you refunded what ever the amount is received.
They can revise the TDS return and take back the TDS, reply to the notice.
Nothing can be done.
They can revise the TDS return and take back the TDS, reply to the notice.
Nothing can be done.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- GST on export of services and Input Credit
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- ITC temporary reversal and reclaim
- Applicable TDS rate for sale of property in Nov 2024
- Inventory of finished goods
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- GST ON EXPORT COMMISSION
- Should I report my US salary for January, February, March in Schedule FA?
- Sale of property furniture sale
- Confusion around Form 26QB fields
- Adjustment entry in the case of Individual and HUF on 31st March
- Stock difference tax applicable on composite rate or normal rate
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
Trending Online Classes
CAclubindia
