Complicated situation

ITR 3339 views 4 replies

Pawan Verma

MBA

25 Points Joined January 2014

This issue has two parts:

Part 1)

- My office filed income tax return for AY2010-11, AY2011-12 and provided me with Form 16 for both years

- I recieved a letter on 16th March 2012 (Demand date 25-01-2012) from IT office demanding Rs. 231763/- for AY 2010-11

- I went to IT office wrote an application mentioning that there is a mistake, i have submitted tax and my Form 16 is attached, take a recieving on these clarification letters and go back thinking that it will be resolved now.

- I recieve another letter later from IT office demanding Rs. 19430/- for AY 2011-12 (Demand date 10-01-2013)

- I then checked my Form 26 AS and found that there is no entry in the form pertaining to AY 2010-11, i asked my office to rectify the same.

- They rectified it, after that i notice that there are two changes a) There is an entry of 184374/- b) There are few more entries in AY 2011-12, totalling to Rs. 46350/-

- I thought now atleast issue is resolved but still on IT website outstanding demand shows Rs. 231763/- for AY 2010-11 and Rs. 19430/- for AY 2011-12.

Please tell me what to do?

Part 2: I retired in may 2011 and recieved my PF amount for which i recieved 200,000 interest from Andhra Bank, where it was deposited, i then filed my IT return taking in account the above interest income and my total tax came around 10,000. I deposited that amount and in parallel bank deducted TDS. now i want to get a refund for that TDS.

Pl suggest

Replies (4)

Mihir

Wealth Manager

5293 Points Joined December 2008

Part - 1

You said your company issued form 16 as well as filed ITR on your behalf. Do you have a proof of ITR filing for AY2010-11 and AY2011-12? Do you know whether they filed the returns before or after due date (31st July) ? Did they file online or manual return? Did you check 26AS for both the years back then?

In case the company failed to file TDS return correctly, it was expected that you would receive a demand notice from ITO. Now that the company is claiming to rectify the TDS returns and is reflecting in 26AS, you may file a rectification u/s 154.

One should never leave the responsibility of filing ITR onto the employer. Hire a good CA and get it done from a professional.

Part - 2

Unless you do the tax computation, you may not be able to find out whether you are entitle to refund. Compute tax liability and then check 26AS. If you have paid excess tax, only then you will be eligible to receive a refund. However, u/s 245, the ITO may adjust this refund with the previous tax outstanding.

Pawan Verma

MBA

25 Points Joined January 2014

Part - 1 You said your company issued form 16 as well as filed ITR on your behalf. Do you have a proof of ITR filing for AY2010-11 and AY2011-12?

Yes i do have proofs of ITR filing for AY2010-11 and AY2011-12

Do you know whether they filed the returns before or after due date (31st July) ?

I have a copy of my ITR and there is also a stamp put on it of date 21 July

Did they file online or manual return?

They filed manual only, i have photcopies of both

Did you check 26AS for both the years back then?

Did not check back then, checked recently only and asked my office to rectify.

How to file rectification?

One should never leave the responsibility of filing ITR onto the employer. Hire a good CA and get it done from a professional.

Part - 2 Unless you do the tax computation, you may not be able to find out whether you are entitle to refund. Compute tax liability and then check 26AS. If you have paid excess tax, only then you will be eligible to receive a refund. However, u/s 245, the ITO may adjust this refund with the previous tax outstanding.

I did my computations and according to my computations tax was around 10370, but bank deducted extra 20,000/- i'll take up this matter too.

Read more at: /forum/details.asp?mod_id=277271

Gaurav Maheshwari

Senior Audit Executive

85 Points Joined December 2010

Part 1- First of all you should file manually rectification application u/s 154 with your jurisdiction ITO for A.Y. 2010-11 and 2011-12 along with TDS certificate and 26AS statement of both A.Y. for for rectifying the mistake in ITD database. As you said your employer filed return manually so it does not rectify without filling application. After filling Rectification it is ITO responsibility to rectify mistak within 30 days. if ito does not rectify the same with in time frame then you can file another application at ACIT and CIT level.

Part 2- After cancelling the demand order you should file a refund application for A.Y. 2012-13 alongwith TDS certificate which was received from bank and 26AS statement.