The Geek (mgr) (43 Points)
09 April 2015hi,
i have received 75000 as professional fees for FY2012-13, FY2013-14 & FY2014-15 (i.e. 25k for each year). the payments were made to me in FY2015-16. i have protested against deduction of 10%TDS since the individual fees for a year does not exceed 30k and i was paid fees in arrears.
please guide as to what the rules say.
thanks.
CMA Poornima Madhava
(CMA)
(13097 Points)
Replied 09 April 2015
Do u have any other income? If no, please file return and claim refund. Also pls verify if the TDS deducted by payer is getting reflected in 26AS, if yes, then it is better to claim refund and if not, then the payer has not paid TDS to govt and hence u can try to convince him to pay u the difference.
Have u shown these arrears as income in the ITR when the income was accrued? If yes, then u dont have to show it as income now.
The Geek
(mgr)
(43 Points)
Replied 09 April 2015
no other income.
The employer has not paid the tds to govt yet. do i have a strong enough case so that i can ask him to pay me the full 75k straightaway ?? since a) individual bill is less than 30k, and b) yearly amount is less than 75k.
p.s. i dont file itr, since my income is less than threshold.
CMA Poornima Madhava
(CMA)
(13097 Points)
Replied 09 April 2015
u have not answered other question. Have u already shown the earlier year's income when u filed ITR for that particular year?
The Geek
(mgr)
(43 Points)
Replied 09 April 2015
i dont file itr, since my income is less than threshold.
CMA Poornima Madhava
(CMA)
(13097 Points)
Replied 09 April 2015
If u r able to prove that the liability arose in FY 13/14/15 respectively to the payer, then u have all right to tell them not to deduct tax now.
What I feel is the payer might not have made provision for these exps each year and hence want to safeguard his interest by deducting tax altogether now.
Even if u r not able to convince them not to deduct, u can still claim refund by filing ITR
The Geek
(mgr)
(43 Points)
Replied 09 April 2015
yes, the invoices for fees have been submitted in the respective years and detailed bill of charges also mentions the yearwise due fees. the employer was delaying the payments all these years and now is insisting on TDS.
in case i file itr, do i need to show yearwise salary and claim rebate u/s 89(1), or should i simply show 75 as income for fy15-16 since it is still less than 2.5 lac limit ?
CMA Poornima Madhava
(CMA)
(13097 Points)
Replied 09 April 2015
If so, payer cannot deduct TDS altogether. Tell him not to deduct TDS because it is their internal problem of not accounting the invoice in the respective period. In case it is not possible, u can file ITR in july and claim tax refund. In your case, it does not matter about relief because income is within exemption limit. The entire income can be shown as current year income. If u r intending to do this, tell the payer to return all those old invoices and cancel the same. Raise a single invoice for 75k. Hope you have PAN.
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