Tax refund

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Saravanan Raju (Querist)
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05 December 2018 Duirng FY2016-17 and 2017-18 I received Phd increment in my salary. But due to implementation of 7th pay where phd increment is removed, the amount given during the above period was deducted in the arrears amount paid to me in 2018 May. my question is that I have paid tax for the salary amount which include the phd increment and associated DA hike during 2016-17 and 2017-18. How to get back the tax paid extra during these financial years. As a governement employee, whether I should get new form 16 or how do deal with this.

Z (Expert)
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10 December 2018 As per S.15, salary is chargeable to tax when it is received or accrued.
Since the salary had been received, the charge which was created on such salary was valid as per the law.

However, it is possible to take the view that that salary which had to be returned should not be considered to have been received.

This, however, would lead to litigation as (in my knowledge) there is no judgment in this regards.

If possible, ask if TDS return can be revised, if not then, unless you are willing to go to the court, pay the tax thereon.

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