Can you claim income tax refund if you fail to file revised return within time limit?

Updated: September 17, 2019 8:06:13 AM

The Income Tax Act, 1961 has explicitly laid down the time limits for filing of original and revised tax returns which need to be adhered to strictly.

tax assessment, revised tax assessment, revised ITR, ITR filing, income tax returnsNo return can be filed post the prescribed period.

By Chirag Nangia

1. Can I get refund of tax for assessment year 2018-19 as date of filing revised ITR expired on March 31, 2019 and I did not claim refund of arrears as I was not aware of Form 10E?

– Pradeep Gaur

The Income Tax Act, 1961 has explicitly laid down the time limits for filing of original and revised tax returns which need to be adhered to strictly. No return can be filed post the prescribed period. In case you fail to file a revised return within the time limit, you shall not be eligible to claim refund.

2. My former employer deducted TDS every month in 2017 and 2018, till I left in March 2018. Form 16 was not given to me and the firm did not deposit the money to the I-T department. What should be done?

—Meher Chandra

As per Section 205, if tax has already been deducted on the income under issue, the taxpayer cannot be called upon for payment of tax to the extent to which tax has been deducted from that income. As a remedial action, you can alert the tax department about the deduction of tax and subsequent non-deposition by the employer by making a complaint in writing. Maintain the proofs of your salary slips and other relevant documents available with you. Internal guideline have also been issued to tax officers emphasising that assessing officers shall not enforce demands created on account of mismatch of credit due to non-payment of TDS amount to the credit of the government by the deductor.

3. Government employees are eligible for 100% tax exemption under Section 10 AA on leave encashment at the time of retirement. But banks are deducting tax on leave encashment beyond Rs 3 lakh. Are bank employees eligible for 100% on leave encashment at the time of retirement?

—T Brahmeswara Rao

Leave encashment received at the time of retirement by government employees is fully exempt from tax. For non-governm-ent employees, exemption is limited to the least of: (a) amount received as leave encashment (b) amount prescribed by the government, i.e., Rs 3 lakh, (c) 10 months’ average salary immediately preceding the retirement (d) unavailed leave balance subject to maximum up to 30 days’ leave for each completed year of service. Where bank employees are government employees, they should be eligible to claim 100% tax exemption of leave encashment.

(The writer is director, Nangia Advisors LLP. Send your queries to fepersonalfinance@expressindia.com. Views are personal)

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