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Incorrect form 16 from previous employer.

sriram (others) (27 Points)

15 July 2017

Hello Everybody,

I need some expertise advice on income tax filing, I stayed for a brief period about 2 months in a Software company in dec-2016 to feb1 2017, and due to personal reasons i quit the company by citing the reason to hr not formal resignation and joined another company. The form 16 of that employer has indicated that i stayed from december to march 2017 and the it shows like the salary is paid for all those months and income tax paid also showing around 27000, which is also reflecting in my income tax site form 26AS. So i need to know do i need to file the ITR with what company has given with incorrect data or can i file with actual salary what i got. Please help in this regard

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11 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160322 Points)
Replied 15 July 2017

Go as per bank statement....... that is as per actual receipt but for TDS deduction.... follow 26AS.

sriram (others) (27 Points)
Replied 15 July 2017

Thank you sir for the quick response, but could you please correct my understanding, so the income declarationto be based on bank statement but tds deduction as per form 26AS, but in that that case wont there be a refund from I.T, but if they refile the it wont that cause problem to me. Please enlighten me sir.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160322 Points)
Replied 15 July 2017

TDS deducted as per form 26AS is the amount already available to your credits....... deposited with IT department.............. So, unless the employer revises it, you can claim it, and department will accept the claim. Department cannot tax you for salary not received by you; as salary is taxed on receipt basis. In case of any rectification of data by employer, you will not be held responsible.

2 Like

RAJA P M ("Do the Right Thing...!!!") (127058 Points)
Replied 15 July 2017

Dear Dhirajlal Sir.,

Thank you for the reply... One more doubt in above said query....

His salary Rs. 100000/month X 3 months = 300000 * 10% = 30000. Employer Deduct TDS Rs. 40000 + 1200 = 41200 (Calculate 4months).

Then ll be file the ITR Salary Rs. 300000 and Tax on 30000+900 = 30900

Tax on Salary Rs. 30900 - TDS Rs. 41200 = (10300). Then its Refundable.

My doubt is .,

Above situtation is correct or not. Bcoz, Your reply is Show the salary as per Bank Statement and Show the TDS as Per 26AS. Then problem ll be in future are not...? In case any notice from ITD hoe to dealt in this case....

Please reply Sir...

(Already i follow the query. And i think & I want you ll be attend this query. Thanks to god for your attend)

1 Like

sriram (others) (27 Points)
Replied 15 July 2017

Thank you sir, but ideally speaking the period i stayed 2 months with that company, they have not taxed on my salary because my salary for 2 month is < 2.5 lakh. but only in the form 16 there is a inflation in the given salary amount and the they depict as if they have taxed me. please acknowledge my understandings.

1.) I can file the ITR based on the amount recieved in my bank account.

2.) The tax deducted can be shown as what ever my 26AS form shows.

3.) when i file the ITR, the refund if available will be credited by I.t dept.

4.) If in case that company refile correctly then my form26AS might show different tax amount, only in this case will there be any problem since i might have got refund.

please validate, Thanks.

sriram (others) (27 Points)
Replied 15 July 2017

Thank you very much sir, It is indeed a great pleasure having a conversation with you.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160322 Points)
Replied 15 July 2017

Yes........... its my pleasure.........

And for point no. 4. There will not be problem........ if department has accepted your claim and paid you refund in first case. so, whenever any rectification by employer reduces your tax credits, then department will first raise demand for the differencial amount, which you will be required to pay back, (naturally, no interest or penalty, when paid within 30 days)

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160322 Points)
Replied 15 July 2017

@ PM Raja:::::::::: In nutshell, I have already replied it in earlier post.

Say, When he has received 30000/- salary......... he has that amount credited in bank statement as proof. ["Department cannot tax you for salary not received by you; as salary is taxed on receipt basis"]........ He should not worry for any statement of his employer, may be the employer wish to take more expense benefit !!.

Now, when department has credit of 41,200 to your credits........... you can claim it. (Does department give us credit of our demand if our demand is more than what they have credits?). Finally, its department's job to verify data from both ends and accept/reject the claim !!!

Any doubt...... ask....

RAJA P M ("Do the Right Thing...!!!") (127058 Points)
Replied 15 July 2017

No Sir.,

Actually i'm typing at the movement of your reply. After submission i see your reply. So, i'm late.

Thank you for Reply

RAJA P M ("Do the Right Thing...!!!") (127058 Points)
Replied 15 July 2017

No Sir.,

Actually i'm typing at the movement of your reply. After submission i see your reply. So, i'm late.

Thank you for Reply

Vishwas g c (4 Points)
Replied 19 July 2019

sir my total amount given my the employer is less than they have indicated in my form16 so how to claim back my tax amount... my employer is not ready to re issue what to do now