Income tax refund for the income that was returned

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Hello,

I worked for the Govt of India. in 2013 I applied for and was granted study leave of 730 days for higher education on full pay. I eneterd into bond with the government for availing of the leave. After the completion of the leave (and my studies) I rejoined my office. Due to personal reasons it became untenable for me to continue and I resigned within a month. As per bond terms I returned the full two years salary + interest to the government and got released.

My question is since I have returned my salary for two years( on which I paid income tax), am I eleigible for the refund of the tax paid during the period ?

This prima facie seems logical since after returning the money with interest I have effectively not earned anything during the period (not even any scholarship which I had to forego as I was getting salary at the time)

I hope the query is clear.

Regards

Kunal Ray

Replies (11)

Scholarship is exempted income. But you have to go and meet the AO. You have to take a letter from Govt/you dept that you have returned the salary as per rules of Govt and this certificate for income tax purpose only. They should write your full name and address along with PAN No.

If AO rejects then you have got right to go to CIT(appeals). On what grounds they are going to give you money and under what head is the question. You may be asked to file revised return.  

 

Hello, Thank you for your reply. So as I understand, I have to approach the AO to find out the course of action. Regards Kunal

What period did the income pertain to?? The better way (if it is possible ) is to file a Revised Return and claim refund of taxes. The AO would not entertain a letter requesting for refund. He would only act on a revised return of income.

Regards

Abhimanyu Jhamba

CA/ Advocate

9218999999

 

Hello, The income pertained to from July 2013 to June 2015. That is assessment years involved are 14-15, 15-16 & 16-17, last one is yet to be filed so I guess the end month can be taken as February 2015 Under which section should the refund be claimed ? Regards Kunal Ray

The tax return can be revised for the first two years as well and refund can be claimed. Return can be revised u/s 139(5). 

 

Regards,

1) Is  assesment done and have you received intimation u/s 143(1)

2) Have you filed the return on or before last date for those respective years.

3) If s.no 1 nad 2 is true then you can approach the CIT/AO asking for permission to file revise return.

4) If you have filed online then file revised return and put greivance under communication with proper explaination. It is quite likely they will send it to Jurisdiction AO. Then you can  explain with letter from your govt organisation that yo have returned the salary.

 

Hi, Indeed it is yes to 1 & 2. And I file returns online. Regards Kunal
You can file revised return for the first 2 years.Further it would be better for you to get a letter from the Government official's stating that you have returned the Salary amount that was given to you.This letter will act as an evidence towards your action.

The Big question is TDS is also Govt money.  Salary in hand  +  Tax deducted from salary is Govt Money.

If you have returned only "salary in hand "  then there is no refund

If you have returned  "Salary in hand + TDS on salary " with int then you can apply for refund.

 

Hello, Thanks for the response. 1. I returned complete gross salary that includes everything and not the net salary that you get after tds deduction. 2. I even returned govt contribution to tier I account in new pension scheme as I am supposed to get back the money from npscra. Regards Kunal

OK give an application to TDS AO of ur jurisdiction along with certificate from govt that salary was returned. Since it is govt organsation they dont have to file IT return otherwise other organisation have  to  take returned salary as income.

See whether matter cab resolved with TDS AO.

 


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