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Old 13th February 2012, 13:17   #151
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Originally Posted by Jaguar View Post
This financial year, I have income from 2 companies. My current employer has not included the previous salary while calculating tax. So how/when do I need to pay up the tax for the salary from the first company? Now or only at the time of filing returns?
Your present employer is obliged to consider your previous employment income and deduct TDS for that portion too, based on a simple written declaration given by you.

Now that it has not been done, you have the following options.
  • Convice your present employer to deduct the tax component on previous employment salary from the February and March salary

  • Pay Advance tax from your pocket on or before 15th March for the previous employment salary

  • When you file your returns, pay self assessment tax on whatever portion of income that has not been conidered for TDS earlier. However you may also have to pay interest due to the late remittance of Tax

Quote:
Also, I have received my PF withdrawal amount from the previous company. Do I have to pay tax for that amount?
Your PF withdrawal is exempt in the following cases:

a. If the employee has worked for at least 5 years with the employer

b. If the service is terminated on account of ill-health or by contraction or discontinuance of the employer’s business or any other reason beyond control of employee

c. If the employee transfers the balance in his PF to his new PF a/c maintained by his new employer
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Old 13th February 2012, 16:26   #152
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

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Originally Posted by animdas View Post
Go to a CA or do a tentative calculation yourself and pay up the tax. There is a form that needs to be downloaded from the IT website. Some banks (I know of HDFC) accept such self assessed(?) tax payments. At the time of filing returns, you should visit a CA who can confirm these amounts and mention in the tax return.

PF withdrawal- I am not sure. But, my investment agent was saying it will be taxed as per your salary bracket.
Thanks, can you recommend any good CA?

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Originally Posted by Warwithwheels View Post
b. If the service is terminated on account of ill-health or by contraction or discontinuance of the employer’s business or any other reason beyond control of employee
Interesting. My previous employer pretty much shut down India operations and we all lost our jobs. But I think in the PF withdrawal form, we all had written reason for closure as "personal". Need to find a good CA now.
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Old 13th February 2012, 17:56   #153
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

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Originally Posted by Warwithwheels View Post
Your present employer is obliged to consider your previous employment income and deduct TDS for that portion too, based on a simple written declaration given by you.
In my case the previous employer failed to consider my investment declarations and I ended up paying quite a bit of tax which was considered in my final settlement. I guess now the only option is to claim the same as a refund when filing my returns?

I have submitted investment proofs to my current employer and this should be ok for the entire year, or whats left of it.

Also in terms of PF withdrawal, I should be clear as I have completed 5 years with the organisation. How much time does this usually take? I hope there is no tax penalty if I receive the amount in the next fiscal year?

Appreciate your clarifications!
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Old 13th February 2012, 18:15   #154
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

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Originally Posted by selfdrive View Post
In my case the previous employer failed to consider my investment declarations and I ended up paying quite a bit of tax which was considered in my final settlement. I guess now the only option is to claim the same as a refund when filing my returns?

I have submitted investment proofs to my current employer and this should be ok for the entire year, or whats left of it
Could you please be more specific about the time line of the events? Presuming that you switched your jobs in the current Financial Year 2011-12, the following points are relevant:

Get your total tax liability worked out. That is previous employer salary plus current employment salary + other income (bank interest, Capital Gains, Income from House Property) etc.,

If the tax liability as worked out above is greater than the total TDS deducted (Present + Previous Employment), you will have to get the balance amount deducted by the end of the financial year March 2012. If it is otherwise, you have claim for a refund at the time of filing your returns.

Regarding your PF, your total previous employment has to be taken into account. Say like you have worked 3 years with A and 2 years with B before joining your present employer, your PF withdrawal should still be exempt.
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Old 13th February 2012, 20:07   #155
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Originally Posted by Jaguar

Thanks, can you recommend any good CA?

Interesting. My previous employer pretty much shut down India operations and we all lost our jobs. But I think in the PF withdrawal form, we all had written reason for closure as "personal". Need to find a good CA now.
If you are in South Bangalore, I know somebody who is a tax consultant ( dont know yet whether he is a CA ).
Please pm me.
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Old 13th February 2012, 21:01   #156
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Originally Posted by Warwithwheels
Regarding your PF, your total previous employment has to be taken into account. Say like you have worked 3 years with A and 2 years with B before joining your present employer, your PF withdrawal should still be exempt.
www- that's an excellent news! Do you have any link to the IT website which says this?
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Old 13th February 2012, 21:28   #157
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

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Originally Posted by Warwithwheels View Post
Get your total tax liability worked out. That is previous employer salary plus current employment salary + other income (bank interest, Capital Gains, Income from House Property) etc.,

Regarding your PF, your total previous employment has to be taken into account. Say like you have worked 3 years with A and 2 years with B before joining your present employer, your PF withdrawal should still be exempt.
Total TDS deducted is greater than my tax liability considering all investments/ home loan interest.

I worked with the same employer for 6 years and a bit, so no issues about the withdrawal, but is there a problem if I get the money in the next fiscal year? I resigned in Nov 2011 so do I have to get the withdrawal before this March end?
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Old 13th February 2012, 22:03   #158
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Originally Posted by animdas View Post
www- that's an excellent news! Do you have any link to the IT website which says this?
There are different ways of interpreting the provision of law based on landmark High court/ Supreme court decisions. You may have to take expert help to find out if you can really take shelter under this premise.

The favourable point of argument is as follows:

The 5 year criteria for tax exemption of the withdrawn PF amount is “maintenance of the PF account”. This means you need a continuous service of 5 years (with one or more organizations).

When you shifted your job, you would have shifted your PF account. So, in effect, you “maintained” the PF account. So, your tenure in both the companies would be counted.

Quote:
Originally Posted by selfdrive View Post
Total TDS deducted is greater than my tax liability considering all investments/ home loan interest
If the excess amount is quite substantial, it would be wise to carry out some capital transaction that you are likely to carry out in the next financial year by the end of 31st March 2012. Like... transfer of property or securities like shares/securities that would result in a gain. This would offset your excess tax credit.

If the above is not possible file a refund and wait for it to arrive at its own sweet time.


Quote:
I worked with the same employer for 6 years and a bit, so no issues about the withdrawal, but is there a problem if I get the money in the next fiscal year? I resigned in Nov 2011 so do I have to get the withdrawal before this March end?
As long as you full fill that criteria, year of receipt would be immaterial.

Last edited by Warwithwheels : 13th February 2012 at 22:20.
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Old 15th February 2012, 23:59   #159
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Originally Posted by animdas
Guys,
Recently I got the following from CPC:

The Income Tax Department- Centralized Processing Centre (ITD-CPC), Bangalore is not in a position to proceed with the e-return filed by you, details of which are indicated above. The return is transferred to Jurisdictional Assessing Officer (in AST) processing of which is to be done by the Jurisdictional Assessing Officer who may be contacted for further clarifications if any. In order to know your current jurisdictional Assessing Officer (AO) you may log on to https://incometaxindiaefiling.gov.in and click on "Know Jurisdiction" under "SERVICES" menu.

Do I need to get worried?
Any information on this- from any of you?
Or, CA is the only option?
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Old 16th February 2012, 10:23   #160
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

@animdas: I had got a similar letter from CPC. My CA asked me to ignore it!!
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Old 19th February 2012, 21:38   #161
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

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Originally Posted by Ferrari1976 View Post
@animdas: I had got a similar letter from CPC. My CA asked me to ignore it!!

Yes, just ignore, this letter is only for information.

If you have any refund, then you need to contact the concerned officer and ensure that the return is processed.
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Old 15th March 2012, 02:14   #162
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

Hi everybody
My daughter was self employed until Jan 31st.Subsequently she has become an employee for feb and march.
Can somebody please guide as to the method of filing returns and does the jurisdiction change specially in Bombay?
What happens to the depreciation for car/laptop?Is it to be calculated for 10 months or do we get for the full 12 months?
Thanks
Regards
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Old 15th March 2012, 07:59   #163
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

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Originally Posted by faustus77 View Post
My daughter was self employed until Jan 31st.Subsequently she has become an employee for feb and march.
Can somebody please guide as to the method of filing returns and does the jurisdiction change specially in Bombay?
Now she will have income from the following heads:
  • Income from salaries [Feb, March 2012]
  • Income from Business or Profession [April 2011 - Jan 2012]

Make sure you have enough Tax credit (TDS) to cover the income from business or she would be liable to pay Advance Tax. The due date for payment of Advance Tax is today i.e 15th March 2012. If she chooses to pay at the time of filing, she would be liable to pay it along with interest.

Alternatively, you can report the net income from Business to your employer and get the tax deducted for the business income too.


Quote:
What happens to the depreciation for car/laptop?Is it to be calculated for 10 months or do we get for the full 12 months?
IMO, she would eligible to claim depreciation for the entire year as long as the assets remain with her as on 31st on 31st March 2012.

It would be prudent to consult a Tax consultant to do the necessary computations and file the return.

Last edited by Warwithwheels : 15th March 2012 at 08:01.
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Old 16th March 2012, 00:46   #164
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

Warwithwheels
Hi.Thanks for your reply.
The tax deducted for the 10 months will more than cover the 2 months tax so that is not an issue.
Her returns have always been filed by her CA but I wanted for my knowledge.
Regards
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Old 17th April 2012, 12:02   #165
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

have an income tax query. I and my wife jointly own a property in city A, which is given on rent. For this property, I had availed a home loan.

I live in City B on rent. As per IT rules, I can claim HRA as well as income tax benefits for home loan since I don't reside in the same city where I have property

My query is regarding the rental income . Should I show the rental income in my income or can I show it as part of my wife's income ?
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