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NITIN DAYALJI DAVDA (Querist)

09 August 2015 Retirement EL encashment for the government employee is a totally tax free, even then my organization has deducted TDS on it, now I have to take refund of that amount, but while checking ITR 1,section 10(i) is not shown, so now what I have to do for claiming the refund?

Amol S Joglekar

Amol S Joglekar (Expert)

09 August 2015 Write net salary under income from salary, dont bother about section 10 and write the TDS under TDS item asw per form 16

ELSE

you can show the same in item no 26

NITIN DAYALJI DAVDA

NITIN DAYALJI DAVDA (Querist)

09 August 2015 Sirji, I have to take the refund of TDS deducted on retirement EL encashment amount, so where I have to claim it, under which available sections shown in ITR 1? My salary income is 6 lacs, Retirement EL encashment amount is 3.5 lacs, so total income comes to 9.5 lacs on which TDS has been deducted is Rs. 72100 after considering rebate of Rs. 1.5 lacs under section 80C.

Amol S Joglekar

Amol S Joglekar (Expert)

10 August 2015 that is what I was trying to tell you.... Anyway.... Show salary income as 6 lakh, claim 80C deduction 1.5 lakh. That's all.

If you insist on showing the said EL income... show it under item 26 of the return under EXEMPT income.

NITIN DAYALJI DAVDA

NITIN DAYALJI DAVDA (Querist)

10 August 2015 Sir, my total income is shown Rs. 9.5 lacs in form 26AS, after claiming rebate of Rs. 1.5 lacs, taxable income comes to Rs. 8 lacs on which TDS of Rs. 72100 is deducted, now when my return will be processed by IT department, the system will consider the amount of Rs. 8 lacs as my taxable income and TDS of Rs. 72100 will be calculated and I won't get refund, so what I will have to do? As you mentioned to show income as 6 lacs, but income of Rs. 9.5 lacs is shown in form 26AS, so system will not allow me to get refund.

Amol S Joglekar

Amol S Joglekar (Expert)

11 August 2015 I think you are getting worried about the likely and probable and FUTURE course of action by the CPC. Please note that there are various ways of processing the return by CPC. You are just mentioning one of them. Ok?

Now, I repeat... A. show the salary income at 6 lakh i.e. excluding EL encashment. B. Claim EL encashment under exempt income. item no 26 in ITR. C. Show the TDS as per form 26 AS

Since you are ex Govt employee, CPC people are also Govt employee, they are acquainted with the kind of adamant mistakes committed by the Accounts Officers while making TDS.

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