Tag: Form 26AS

Is it mandatory to file income tax returns, by only referring to Form 26AS?

Personal Finance

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What head of income is the compensation received on compulsory acquisition of a house with plot taxable under? Or is it exempt?

Rajan NA

Section 45(5) of the Income Tax Act, 1961 (the Act) deals with taxability of capital gains pursuant to compulsory acquisition of capital asset under any law. A house with plot is a capital asset and gains arising due to compulsory acquisition shall be taxed under the head ‘Capital Gain’. Depending on the period of holding the capital gains may have to be categorized as long-term or short-term .

The query is related to tax deducted at source. Is it mandatory to file income tax returns, by only referring to Form 26AS? I am yet to receive Form 16/16a from the deductor. In another case Form 26AS doesn’t reflect amounts appropriately, partly they have allowed partly they have not given credit. I request you to please clarify what can be claimed as tax paid now, in ITR?

Sivalingam

Income earned during the financial year needs to be offered to tax while filing the tax return in India. An individual is required to collate details of all income earned during the financial year, like salary income, rental income, interest income, etc. and consider the same for tax filing, regardless of whether there has been tax deduction on such income. It may be noted that the details reflected in the Form 26AS are based on the withholding tax returns filed by tax deductor. It is important to reconcile the income and taxes reported in Form 26AS before filing the tax return. The central processing unit (CPC) checks the accuracy of the amounts offered in the tax return by comparing it with 26AS and raises queries in case of discrepancies. Therefore, in case of any difference in the amount, you are required to connect with the deductor so that necessary corrective action can be undertaken which should then reflect in Form 26AS.

The writer is Partner, Deloitte India

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How important the salary certificate is for filing I-T return

Personal Finance

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I superannuated in May 2018 from BEML, a Bengaluru-based PSU on attaining the age of 60. I retired on pre-revised wages, though the wage was due for revision from January 2017. The wage revision was settled in during March 2019 and the arrears were paid for eligible retirees in November 2019. The payment does not figure in my Form 26AS. I need to file my returns for the AY 2020-21, but in the absence of Form 10E for claiming rebate on arrears, I am unable to proceed with filing returns. I have been following up with the company for the relevant form but have not made much progress. Can you please advise me on how to go about filing my returns? Is it possible to claim rebate in the absence of the statement and relevant form?

Suresh GS

I understand that you have received payment of arrear salary from your erstwhile employer during FY 2019-20. In such cases, if you are taxed at a higher rate, other that the rate at which you would have been otherwise taxed (in case such incomes was paid in earlier years), a tax rebate as per provisions of section 89 of the I-T Act, 1961 is available. For claiming such rebate, form 10E is required to be filed online in your income-tax account after which the return of income would be filed.

Hence, you should ask for the annual salary certificate, i.e,. Form 16 (Part A & Part B) and Form 12BA (if tax has been deducted)/salary certificate (if no tax has been deducted) from your erstwhile employer, along with a computation of salary income having details of arrear salary for the previous respective years. This would help you in filing of Form 10E and your tax return. In the absence of these details, you may find it difficult to complete Form10E and subsequent tax return.

The writer is a practising chartered accountant.

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