Treatment of arrears pension fund contribution by employer (
This query is : Open
27 November 2014
Dear Expert,
I am working in a PSU. In FY 2013-14 my company revised the Pension scheme w.e.f 2007. And started Employer contribution @ 15% of basic+DA.w.e.f 2007. The company contributed this as arrears contribution in 2013-14 FY for 2007,2008 so on. And it taxed at the Hand of Employee during AY2014-15. But I heard that up to Rs.1 Lakh contribution by employer towards approved Pension fund is exempted. So can I Claim this deducted tax by filing a revised return now.Please clarify with relevant provisions.
I am working in a PSU. In FY 2013-14 my company revised the Pension scheme w.e.f 2007. And started Employer contribution @ 15% of basic+DA.w.e.f 2007. The company contributed this as arrears contribution in 2013-14 FY for 2007,2008 so on. And it taxed at the Hand of Employee during AY2014-15. But I heard that up to Rs.1 Lakh contribution by employer towards approved Pension fund is exempted. So can I Claim this deducted tax by filing a revised return now.Please clarify with relevant provisions.
27 November 2014
In case of arrears are received retrospectively, Employees are eligible for rebate under section 89(1) of Income Tax Act, 1961.
Under Section 89(1) only differential tax required to be paid
For Example in 2007-08 employees had total income of Rs. 1,20,000/- on which Rs. 30,000 was paid as on tax
and
after taking arrears for the 2007-08 Rs. 20,000 (assume) received in financial year 2014-15.
The total income of Rs. 1,50,000/- on which tax is Rs. 35,000/-
Therefore only 5,000/- required to be paid
Under Section 89(1) only differential tax required to be paid
For Example in 2007-08 employees had total income of Rs. 1,20,000/- on which Rs. 30,000 was paid as on tax
and
after taking arrears for the 2007-08 Rs. 20,000 (assume) received in financial year 2014-15.
The total income of Rs. 1,50,000/- on which tax is Rs. 35,000/-
Therefore only 5,000/- required to be paid
28 November 2014
Dear sir,
But in my case I am in same tax bracket for all this year. My specific query is that, My company had deducted the tax @30.09% rate at the hand of Employee, for the entire amount of Pension contribution by Employer(2007-08.2008-09 etc to 2013-14.This is without considering the Tax exception available for the Employer contribution towards approved Pension fund. My query is that can I claim this deducted tax back by filing a revised return? What is the form for this calculation? 10E cannot use for this purpose because it is just for differential tax. Your reply is awaited.
But in my case I am in same tax bracket for all this year. My specific query is that, My company had deducted the tax @30.09% rate at the hand of Employee, for the entire amount of Pension contribution by Employer(2007-08.2008-09 etc to 2013-14.This is without considering the Tax exception available for the Employer contribution towards approved Pension fund. My query is that can I claim this deducted tax back by filing a revised return? What is the form for this calculation? 10E cannot use for this purpose because it is just for differential tax. Your reply is awaited.
28 November 2014
Even If Employer has wrongly deducted TDS without considering section 89 (1) you are still able to get refund of Excess Tax deducted by the employer.
For practicality of Section 89 (1) you don't need to file revised Return of Income. Claim can be made in present Return of Income.
Further if you are falling under same slab rate for the year, in that benefit of section 89(1) would not arise
Even If Employer has wrongly deducted TDS without considering section 89 (1) you are still able to get refund of Excess Tax deducted by the employer.
For practicality of Section 89 (1) you don't need to file revised Return of Income. Claim can be made in present Return of Income.
Further if you are falling under same slab rate for the year, in that benefit of section 89(1) would not arise
29 November 2014
you can take section relief u/s 89(1)
you calculate the tax current year and take the income in related income.
and then if tax diff if come then you cannot take the relief.
if earlier year tax slab in lower than the current year then you take benefit otherwise not.
you calculate the tax current year and take the income in related income.
and then if tax diff if come then you cannot take the relief.
if earlier year tax slab in lower than the current year then you take benefit otherwise not.
01 December 2014
Dear Expert,
I agree with you. In my case I am in the same tax bracket. So no chance of diff. tax. Now please see this. In Each Year from FY 2007-08 to 2013-14 do I am entitled for exemption of Rs.100000/- (contribution by Employer to the approved Pension fund) Year wise break up statement is given by my employer. But they taxed it in the contribution year(FY2013-14) as arrears. Now can please clarify, can I calculte the tax in each year with Rs. 1 Lakh exemption. In that case i am eligible for refund to the tune of 30% of 1 lakh each year? Please clarify.[Please note that the arrears is pension contribution by employer]
I agree with you. In my case I am in the same tax bracket. So no chance of diff. tax. Now please see this. In Each Year from FY 2007-08 to 2013-14 do I am entitled for exemption of Rs.100000/- (contribution by Employer to the approved Pension fund) Year wise break up statement is given by my employer. But they taxed it in the contribution year(FY2013-14) as arrears. Now can please clarify, can I calculte the tax in each year with Rs. 1 Lakh exemption. In that case i am eligible for refund to the tune of 30% of 1 lakh each year? Please clarify.[Please note that the arrears is pension contribution by employer]
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
- GST ON EXPORT COMMISSION
- Should I report my US salary for January, February, March in Schedule FA?
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Tds on building rent monthly
- Regarding Waiver of Interest levied u/s 50 of PGST/CGST Act
- Confusion around Form 26QB fields
- 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 ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
Trending Online Classes
CAclubindia
