TDS DEDUCTED AND DEPOSITED AGAINST MUTUALLY CANELLED JOB CONTRACT.

This query is : Resolved

PRASANNA KUMAR (Querist)
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30 September 2022 Dear Experts,
I accepted a job offer in May 2022 and the employer had given a signing bonus(advance) for 5 Lacs after deducting TDS. A contract also was signed with a condition that if the job offer is not accepted thereafter the entire amount has to be returned. Due to other reasons I cancelled the job contract which we agreed mutually and accordingly I paid back the
entire amount(less TDS) received and requested them to adjust the TDS amount(Rs.1.76Lacs) in the their other payables but they insisted to pay it immediately and now deposited and appeared in my 26AS( but NOT shown in ATS) and informed me to claim refund this FY22-23.
My query is :
Whether I get IT refund for the TDS paid this year as my income also is increased by 5 Lacs with the addl.tax liability.
What documents I should get from the employer while filing IT returns to claim the refund as I returned the entire amount received and now the TDS also is back to them.
Can I inform them to wait till it appears in my ATS OR inform them to wait till I receive the refund since I informed them well in advance to cancel the contract and not to deposit the TDS.

Thanks for your kind help and advice.

Prasanna

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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30 September 2022 Now they can adjust the amount in the TDS payable in the next quarter TDS return and refund the amount.
If you want to claim the amount by filing ITR you have to show 5 lacs in ITR and additional tax payable.

PRASANNA KUMAR

PRASANNA KUMAR (Querist)
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30 September 2022 But Sir the TDS they already deposited to Govt against my PAN.
When the entire amt is paid back to the company can I get relief from IT by providing the details and get refund. What docs are required for proving the same

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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01 October 2022 TDS return can be revised and it can be utilised for future payments.
You can't get refund.
You have to file ITR including the 5 lacs and pay more tax.

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