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Arrears in income tax

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geethu

21 Points Posted on 14 January 2021

In fy 2018-19 excess salary was credited to my account mistakenly. and in 2020 this was recovered from arrears .and arrears shows a negative figure.i have already remitted tax for fy 2018-19. but not filed return for the same .so will I get refund if arrears are deducted from the income of that fy.

Replies (2)

Quick Summary

This discussion addresses a situation where excess salary was mistakenly credited and later recovered, resulting in negative arrears. The user paid tax for the relevant financial year but hadn't filed a return. Advice suggests that a refund might be possible if arrears are deducted from that year's income, but relief under Section 89 may not apply due to the initial error. Rectifying the mistake with the employer and filing the return promptly, potentially with prior approval under Section 119(2), is recommended.

CA. Sourav Sarkar

Chartered Accountant

16188 Points Posted on 15 January 2021

You will get relief u/s 89

Kapadia Pravin

10683 Points Posted on 15 January 2021

No relief / benefit is available under 89 as here is a mistake which happened in his case.

He has to file return with correct Salary Form 16, 26 AS . That means employer to rectify mistakes.

Do not delay filing return of income now and for that prior approval under 119(2) is must.