Your Queries: Can apply to settlement commission after paying additional tax and interest

By: | Updated: October 24, 2018 12:11 AM

The application to settlement commission for settlement under Section 245C can be made at any stage of the case if the proceedings for assessment is for previous six assessment years and additional amount payable exceeds Rs 50 lakh.

One of my relatives had search and seizure under Section 132. As directed by the assessing officer, he has filed fresh returns for previous six years under Section 153A. The assessment proceedings of above returns are in progress. Can he make application to settlement commission for settlement of his matter under Section 245C?
—Vijaysinh Ved

The application to settlement commission for settlement under Section 245C can be made at any stage of the case if the proceedings for assessment is for previous six assessment years and additional amount payable exceeds Rs 50 lakh. It is mandatory that payment of additional tax and interest amount has been made on or before filing such application and proof of such payment is attached with it. Hence, pay interest till application day. As per Section 245H, settlement commission has power to grant immunity from penalty and prosecution but not interest.

I retired on April 16, 2018 and notification on gratuity came into force on March 29, 2018. Can I take Rs 20 lakh as tax-free gratuity?
—Ashok

Limit of amount of gratuity payable to employee was increased to Rs 20 lakh vide notification No. SO 1420 (E) dated March 29, 2018, amended in Payment of Gratuity Act, 1972. Moreover, limit for exemption of gratuity under Section 10(10) of Income Tax Act refers to the limit of maximum gratuity specified under the Payment of Gratuity Act. Hence, no change is required under Income Tax Act.

While I fall under the lowest income tax slab of 5%, TDS is deducted at 10%. What should I do?
—Kishore Ghore

You can apply for refund of TDS in excess of your overall tax liability by filing your I-T return. If you don’t want to opt for refund, you can apply for certificate of lower deduction under Section 197 with your jurisdictional assessing officer. For this, produce your previous year’s ITRs and a tentative computation of income and tax liability thereon for the year under consid-eration along with any other documents as asked by the concerned officer. If satisfied, the officer will issue you a certificate for lower deduction and you can furnish a copy of such certificate to the payer and the payer will need to deduct TDS at the rate specified in the certificate. This certificate is valid for one financial year only.

(The writer is partner, Ashok Maheshwary & Associates LLP. Send your queries to fepersonalfinance@expressindia.com)

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Switch to Hindi Edition