Your Taxes

I am a bank employee. My ITR V for FY15-16 was submitted on July 28, 2016. I had claimed ₹6,204 as relief under Section 89(1) in the return. There was a message on November 15, 2016 that ITR for AY 2016-17 had been processed and Order under 143(1) would be sent by e -mail. But no e-mail has been received yet. On November 15, I filed Form 10E online and also received the acknowledgement. Now, I have received a letter from IT authorities asking me to pay the ₹6,204. What should I do?

Thomas John

It is compulsory to file Form 10E online if you have claimed relief under section 89(1) in your tax return. We understand from your question that you filed Form 10E online after your return of income was processed by the CPC. As a result, the relief was not factored by the CPC while processing your tax return, leading to the tax demand.

Considering the fact that relief has been claimed in the tax return, you could now place an online rectification request providing the reference number of the CPC intimation. If you cannot retrieve it from your registered e-mail address, you could request for the intimation again through the online portal. If you are not successful in making an online request, you could file the rectification request manually with jurisdictional tax office.

I disclosed the gross interest received in my IT return and claimed the corresponding TDS. Since the TDS was not reflected in my Form 26AS, it was disallowed, leading to a shortfall in tax in the overall assessment. The company does not respond to my letters despite several reminders. What is my remedy against the company and the department?

Can I ask the company to compensate me to the extent of TDS deducted but not getting reflected in my 26AS? Can I file revised return showing only the net amount of interest received?

Shantilal Popatlal Vora

You could take this up with the Commissioner of Income Tax (TDS) having jurisdiction over the company. The ASK department in tax office will help you with the jurisdiction details. In the meantime, you could disagree with the outstanding tax demand by logging into your account in the income tax portal and providing reasons for such disagreement.

Through this, you could keep the tax authorities informed of the situation which, in turn, could avoid further action at their end. You could also meet your jurisdictional tax officer, explain the situation and file a formal response outlining the inaction from the payer of interest with the copy of certificate issued by the company earlier.

On your query about asking the company to compensate you for the TDS not reflected in the 26AS, we may not be able to comment on this, given the nature of the issue. However, tax laws do not provide for any such recourse though the authorities could write to the company seeking this information.

On the third question, interest is taxable on gross basis and not net of tax deduction. Therefore, the revised return option is not feasible.

The writer is Partner, Deloitte Haskins & Sells LLP. Send your queries to taxtalk@thehindu.co.in

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