Income tax query

I work for a software company. Recently I was working on client side on behalf of my company. My company gave me an extra allowance, since i was on the client side. The amount came up to Rs. 6000 per month. However, in the form 16 i received from my company, this amount was not mentioned anywhere. 

I wanted to know whether this amount would be taxable as well & would be considered as my extra income. I have made investments under 80C of Rs 1 lakh, but due to this extra income, my gross income becomes 2,80,000. 

Needs some suggestions from you guys. Thank you for your time. 

Regards,

Zim

Replies (1)

 

You need to tally the figures in Form 16 with the tax declaration statement provided by you to your organisation at the beginning of the year. It’s possible that the figures mentioned are either wrong, or not considered at all.

The result would be that fewer deductions would have been shown, resulting in higher tax liability. You might not have submitted the proofs of all investments, or could have forgotten to submit some bills.

If there is an error by the employer, you could request them to rectify it and issue a revised Form 16. If a higher tax has been deducted, you can claim a tax refund while filing your return

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