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My sister's company collects proof of tax-saving investments around mid-January every year.
Thus, her scheduled ELSS SIPs, home loan EMIs, LIC payments, PPF, etc., for February and March get excluded.
In the last two years, she has been filing her tax returns according to Form 16 provided by her company. I believe that she is paying more tax and also is not getting her correct refunds because she is showing less than what she is investing per year in her returns.
What should she do?
Ananth
According to income tax provisions, if an employer does not give the benefit of deductions for any investments made, you can claim the same at the time of filing of your original income tax return.
In case the claim denied by the employer was not claimed in the original return through an oversight, income tax law provides for rectifying the omissions made in the income tax return filed subject to certain conditions.
If any person who has filed his return within the due date applicable to him or in pursuance of a notice issued under Section 142 (1) of the Income Tax Act, 1961, discovers any omission or any wrong statement therein, he may furnish a revised return at any time before the expiry of one year from the end of the relevant assessment year or before the completion of the assessment, whichever is earlier.
Therefore, your sister can revise her tax returns to claim the deduction that was not claimed earlier for the financial years 2012-13 and 2013-14.
The refund can be claimed for additional investments made by her provided the same do not exceed the maximum deduction available for that investment under the Act.
The due date of revising the return for FY2012-13 is March 31, 2015, and for FY 2013-14, it is March 31, 2016. This is subject to the condition that no assessment order has been passed on the date of filing of the revised return.
In case an assessment has been completed, she may file an application to the Commissioner under Section 263 of the Income Tax Act, 1961 (subject to certain conditions stated therein), to revise the order and claim the deductions not claimed at the time of filing the original return.
You may also note that while making the claim for deduction, she must also file the evidence for investments made in support of the deduction claimed.
The writer is a practicing chartered accountant. Send your queries to taxtalk@thehindu.co.in
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