Voluntary ex gratia paid by employer, after deducting tds,
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
31 March 2018
One employees received voluntary ex gratia from employer on termination of his employment.
Employer has deducted TDS on this amount.
There are various high court decision about non taxability of this voluntary ex gratia payment.
However, since employer has deducted TDS, employee wants to claim the same as refund from Income Tax.
How he has to present the same in IT return to get this refund.
Point to be noted is that the Form 16 issued employer has this ex gratia payment included in salary income
Please advise.
Regard
Employer has deducted TDS on this amount.
There are various high court decision about non taxability of this voluntary ex gratia payment.
However, since employer has deducted TDS, employee wants to claim the same as refund from Income Tax.
How he has to present the same in IT return to get this refund.
Point to be noted is that the Form 16 issued employer has this ex gratia payment included in salary income
Please advise.
Regard
02 April 2018
File return showing ex-gratia as exempted income and seek refund. AO, naturally,
will disallow the claim.Then seek appeal before CIT(Appeals) on the strength of
court decisions.
will disallow the claim.Then seek appeal before CIT(Appeals) on the strength of
court decisions.
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