Compulsion of return filing for salaried employee

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 March 2014 Pls
Can anybody tell me whether it is necessary for the salaried employee to file return if his/her TDS is deducted

1) what would be the liability to that employee who Didn't file his/her return.

2) If the salaried person's TDS is deducted and he/she is filing return but suddenly he /she ignore to file the return by thinking "ki TDS to kt hi raha Hai" Whats the need to file the return.

3) This a type of CASE LAW :- In School, Salary given to Teachers is very much less than its shown in the Books although TDS is deducted on it and there actual given salary is not liable to deduct TDS. If these Teachers Didn't file the returns and if they got notice by ITO for non-filing of the return then what will be the liability for them.

((Pls answer all the Ques. point wise And Starting Para and 1st Point is Related.))

Nikhil Kaushik

Nikhil Kaushik (Expert)
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15 March 2014 Well the answer doesnt require point by point analysis. The simple rule is that if your income is above the taxable limit, you are required to file tax return. the penalties for non-filing the return can be levied even if whole or or excess tax has been deposited by way of TDS/advance tax.

If the actual salary is less than what is being shown in the books, then it is a fraud that is being perpetuated by the school and should be brought to the notice of the jurisdictional tax officer and relevant controlling authority and the affiliating education board.

But as long as the school in not in the dock, the teacher is required file its tax return.

Querist : Anonymous

Querist : Anonymous (Querist)

15 March 2014 whether there is any liability on the side of teachers in this 'FRAUD'

When is the liability created for anybody for filing of return.

If am I right then pls tell me 'Liability for anybody for filing of return is created when GROSS INCOME exceeds taxable limit which is Rs. 2,00,000/-

Nikhil Kaushik

Nikhil Kaushik (Expert)
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15 March 2014 well I dont think teacher can be held liable in any case for the fraud part.

If you read my earlier answer, it clearly states that liability to file return arise only when the income crosses above exemption limit ie 2 lakhs.

the question is how will you deal with the situation where actual salary is below 2 lakhs and as per TDS records it is above 2 lakhs! In such cases, as per tax department, you shall be considered in default for not filing the return.

The mechanism to resolve this issue is to get the form 16 from the employer and thereafter approach the department with the proof of fraud or to threaten the employer that you will approach the department!

Querist : Anonymous

Querist : Anonymous (Querist)

18 March 2014 sir but you didn't tell me whether teacher is liable to pay intt. or penalty in this fraud.

sir also one thing if salary given to teachers is also liable to TDS and actual salary given to teachers is also liable to tds then in that case what will be the liability for both school as well as teachers

Nikhil Kaushik

Nikhil Kaushik (Expert)
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18 March 2014 Friend, wont the salary paid to teachers be included in the salary reported in tds returns?

Querist : Anonymous

Querist : Anonymous (Querist)

19 March 2014 sir

I mean actual salary given to teachers is less than salary shown in books but liable to tds and salary given to teachers as per books is more than actual salary given to teachers and liable to TDS then what will be the liability of teachers and school, if return not filed by teachers and notice is sent by ITO to teachers because both the TDS is different

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