Query regarding filing of income tax return

I have a salary income of Rs. 40 lakhs with a TDS of Rs. 9 lakhs which is reflecting in my form 26AS. However, It is stipulated in my employment agreement that if I'll change my job then I will have to return last quarter's salary of Rs. 6 lakhs which I have returned in the succeeding F.Y. i.e.2021-22.

So my query is that how much proportion of my salary i.e. 40lakhs is taxable in F.Y.2020-21.

Kindly resolve my issue asap.

Replies (2)
Quick Summary
This discussion addresses a query about filing an income tax return when a portion of salary has been returned to the employer. The user earned Rs. 40 lakhs with Rs. 9 lakhs TDS, but returned Rs. 6 lakhs of salary in the subsequent financial year. The core question is how much of the Rs. 40 lakhs is taxable for FY 2020-21. The advice suggests paying income tax on the entire Rs. 40 lakhs for FY 2020-21, as TDS was deducted on the full amount, and the returned amount is considered compensation to the employer.

Follow form 16. Ask your employer to rectify the TDS deduction statement to net off the returned amount..

One has to pay Income tax on entire 40 lakhs in the return of FY 20-21 as TDS deducted on entire 40 lakhs.
Employee is paying Rs 6 lacs as a compensation for loss of employee to employer company.
There would not be any loss of revenue to the department for income of 3 months period.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register