Income Tax Refund

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 July 2010 Can I Claim Refund Of amount wrongly charged as penalty of not deducting avance tax on time whereas after deducting T.D.S. my tax liability is only Rs. 5061. From 2010-11 A/Y this Limit is extend to Rs.10000/ but my employer does not agree with It. Can I claim refund of penalty wrongly deducted by my employer

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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14 July 2010
Under the existing provisions of section 208 the Income-tax Act, liability for payment of advance tax during a financial year arises when the amount of such tax payable during that year is Rs.5,000/-or more. This limit was fixed in 1996.

With a view to providing for inflation adjustment, it is proposed to raise the threshold limit for payment of advance tax from the present Rs.5,000/- to Rs.10,000/-.

The proposed amendment will take effect from the 1st April, 2009. Accordingly, advance-tax for the financial year 2009-2010 would be payable only if the advance tax liability is Rs. 10,000/- or more.

For advance tax, employer can't deduct penalty. For delay in advance tax, there is interst which is deposited at the of self assessment.
As per my view, Employer has not deducted TDS from salary and he deducted TDS with Interst from salary.
For default of deducting TDS , you are liable to pay any interst.

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