Tax implication on return of interest subsidy on housing loan to the employer

Suppose, Mr. A is working with XYZ Ltd in Mumbai.XYZ Ltd since last. has a Scheme that any permanent emplyoee who has completed his 5 years job in XYZ Ltd will be eligible for Housing Loan Interest subsidy,.The same will be paid monthly basis and the employee who has availed the benefit of the scheme is required to work in XYZ Ltd. ,for the period of 5 years from the date of availment of the benefit of the Scheme.If the employee lefts his job before completion of 5 years the entire subsidy availed will have to be returmed to XYZ Ltd.Mr. A has availed the benefit of the Scheme.XYZ Ltd. was paying theamount of subsidy every month to Mr. A and deducted applicable TDS on the amount of subsidy.Mr. A left the job before completing the stipulated period of 5 years and XYZ Ltd. recovered the entire subsidy paid from Mr. A from his full and final settelment.

Now the question is: 

1) Can Mr. A cliam for refund of TDS paid on the subsidy as he is return to he employer the entire subsidy availa by him till his resignation? if yes

2) under which section of the Income Tax the same will be claimed? and how the same will be claimed.

Replies (4)

TDS refund can be claimed.

There is no section for same

Thank you for reply but there should be some provisions in the IT Act., regarding claiming of refund of TDS .Can refund of TDS be claimed in one Shot or can be claimed in next years in slab like total TDS  dedcted Rs.40000 on subsidy paid for 4 years Rs,40000/4 years= Rs.10000 per year.

 

Whatever TDS is visible in your 26AS that can be claimed 100% in the year

Rs. 40000/- is not deducted in one shot Madam,it is deducted in four years like in first year Rs.12000 scond year Rs.11000 in third year Rs.10000 and in fourt year Rs.7000. on the subsidy.Now the TDS deducted from Frist to third years wolud be shown inthe 26B of the respective year correct how the same can be claimed as refund? 

 

There should be some provisions in the IT ACt.

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