Income tax on loss of pay

1881 views 7 replies

Dear Experts,

I quit my job on the 15th of Oct with aprivate firm and my annual salary is 5.40L PA.
Now I just received communication that my income tax amounts for the 7 months will be deducted in my final settlement which I understand is to be paid.

Now the big confusion is that they claim the tax will be deducted on gross that is 45000PM x 7 Months = 315000

However, I have take a lot of leaves in this period of 7 months and also not received full salaries due to the loss of pay and the difference is quite high and the salaries credited to my bank account during this 7 month period comes to 
234226 in all.

Now after deducting The Travel Allowance, HRA, LTA the difference in calculations is quite high which is causing me a problem.

I have discussed this and said that the calculation is not right to tax me on money which I have not earnt. Am I wrong in thinking so ? Please advise.

Thank you
Avinash

 

 

Replies (7)

i didn't get properly what u wannna ask

TDS can not be deducted on amount which is not paid to you.

TA/HRA/LTA are diff issues which are to be calculated on salary slip basis and added for past paid months, as LTA may get taxable for such short span of service.

make a chart from your salary slips and handover to accounts department for right calculation.

Thank you for the information Mr. Sharma.

So, I would need to look at the actua; amount credited to my bank account and have tax calculated on it.

Please correct me if I am wrong.

Thanks
Avinash

 

Originally posted by : Avinash

Thank you for the information Mr. Sharma.


So, I would need to look at the actua; amount credited to my bank account and have tax calculated on it.

Please correct me if I am wrong.

Thanks
Avinash


 

actual amount credited to your bank is 

gross salary (less deductions of PT/ESI/PF), so better rely to your salary slips which were handed over to you monthly basis.

Thank you Mr. Sharma.

I just spoke to our accounts team and they still insist that they would consider my gross 45k/month to calculate.

I have conveyed that it would need to be calculated adding up all the bank salary credits and then do the calculation and they seem to be not agreeing.

Is there anything that I can point to ?

Please help.

 

Avinash

@ Avinashji,

i think they are not paying you the salary of 7 months but are making due of expense although they have not paid.

Originally posted by : Avinash

Thank you Mr. Sharma.

I just spoke to our accounts team and they still insist that they would consider my gross 45k/month to calculate.

I have conveyed that it would need to be calculated adding up all the bank salary credits and then do the calculation and they seem to be not agreeing.

Is there anything that I can point to ?

Please help.

 

Avinash

Bank tranfers reflect the money transfer only, it does not produce actual picture of salary credit in company accounts, 

suppose you have taken any loan/advance from company , then the net transfer is reflected alfter deducting the advance, ( including statuary deductions also)

before deduction, ask for the calculation sheet from the, and section under which they want to deduct. 

 

as the deduction is there for 7 months only, still you have upper hand , coz your balance 5 months income/ salary will be accumulated and you can be able to set off the excess tds in this 5 months salary from 2nd place, and if still remain excess then u can be able to get refund by filing ITR.

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