Govt recovered from salary

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Hetvi (Querist)
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07 August 2014 Till May, 2014 Mr.A received Rs. 25000 basic pay + Rs. 5000 allowance as total salary of Rs. 30000/-

Now on some certain reason Govt. said Mr. A is not eligible to receive allowance of Rs. 5000/-.

and govt. also recovered that allowance which is already paid to Mr. A from his Salary of Rs. 25000/- from the month of June, 2014.
( allowance recover on the basis of employee's remaining period of service)

My Question : what is procedure in income tax return for A.Y. 2015-16?

and how to calculate salary? plz reply as early as possible...

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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07 August 2014 Whatever the salary received during the year 2014-15 after recovery of excess payment has to be considered as salary for A.Y.2015-16.
Recovery relating to previous year may be adjusted during the current year.

Hetvi

Hetvi (Querist)
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08 August 2014 But in salary slip they deduct tax on gross value i.e on Rs. 25000/-,

Question: is it possible to claim refund in income Tax return ? and how to explain Form 26AS where salary is Rs. 25000/-?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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08 August 2014 Salary disbursing officer may be requested to consider recovery also for deduction of tax.
The salary under 26AS should be net salary after recovery.
Refund can be claimed in the return as evidence of recovery is there.

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