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Salary return: slight modification from form 16

yashsr (CA) (2285 Points)

26 July 2012

Hello,

Assessee say named 'Sachin' worked at Axis Bank for 6 months and then for ING Vyasya for 3-4 months in AY 12-13. TDS was deducted from Axis Bank to the extent of Rs.2500 and no TDS deducted from ING Vyasya. The assessees total net income(after deducting deductions) from both banks is Rs.235000 whereas the exemption limit for AY 12-13 for male individuals is Rs.180000. So he should have paid Rs.5500(plus cess) as tax. But he has only paid Rs.2500.

Is there scope for tax planning in this case? Sachin actually lives on rent and he or his family members don't have a house of their own. So can he claim Rs.24000 under Sec 80GG given that it is not shown in either of his Form 16s?

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Giridhar S Karandikar (Team Lead) (7543 Points)
Replied 26 July 2012

Dear Yash, you will have to add the salaries received from both the banks during F.Y.2011-12 while claculating the tax liability. Consider the exemptions/deductions relating to F.Y. 11-12 as per form 16 & also the exemptns/deductions whihc were not being disclosed to the banks for the same F.Y.

After that calculate the final tax liability. Reduce the TDS made as per the Form16 of the both banks from the tax liablity. If still he is liable to pay tax then the SAT needs to paid before filing the return. If he is eligible for refund then provide the bank details correctly to get the refund by direct credit into the bank account.

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