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Old 13th January 2014, 23:20   #436
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Undead
Hi
Thanks a lot for your detailed reply.
Form 16 A clearly shows deductor,deductee (with PAN nos ), the bank where paid and the challan number etc etc. AFAIK the TDS quarterly returns were correctly filed. Only thing is that the IT dept's records don't show it.I had checked with the CA of the deductor and he confirmed it. Unfortunately he is no more with that company and his replacement is not at all willing to be of any help whatsoever.
The claim is for TDS for income earned against contract work.
To sort out the mess and close the chapter am willing to give the bond and the ITO is willing to refund.The ITO's contention is that as the dept is not at fault,which is nowhere near the truth as form 16 A is very clear, I am not entitled to refund.I can of course refuse this and file a RTI enquiry or escalate the matter but would avoid it and get on with life. Incidentally there has been a judgement given by the Delhi high court which puts the onus of such rectifications on the ITO. Have you read about it?
As there has been no order passed for refund I should be entitled for interest. My point is whether her contention holds water.
Please reconfirm that I use the format for bond as per the link provided by you
Thanks a lot once again for your help and guidance
Regards
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Old 14th January 2014, 07:34   #437
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Originally Posted by faustus77 View Post
Undead
Hi
Thanks a lot for your detailed reply.
Form 16 A clearly shows deductor,deductee (with PAN nos ), the bank where paid and the challan number etc etc. AFAIK the TDS quarterly returns were correctly filed. Only thing is that the IT dept's records don't show it.I had checked with the CA of the deductor and he confirmed it. Unfortunately he is no more with that company and his replacement is not at all willing to be of any help whatsoever.
The claim is for TDS for income earned against contract work.
To sort out the mess and close the chapter am willing to give the bond and the ITO is willing to refund.The ITO's contention is that as the dept is not at fault,which is nowhere near the truth as form 16 A is very clear, I am not entitled to refund.I can of course refuse this and file a RTI enquiry or escalate the matter but would avoid it and get on with life. Incidentally there has been a judgement given by the Delhi high court which puts the onus of such rectifications on the ITO. Have you read about it?
If the Tds return has been filed, ask the acknowledgement number from the deductor if its not mentioned in the form 16a and check on the tin-nsdl website. They might have given incorrect pan number in the return , and that might be the reason. The problem is you need to prove the maximum way possible that everything from your side is correct.
Regarding the bond , yes you can use the link I provided which is from the caclubindia website and its filled with experts there. You can also post your queries there .
Since 16A is clear , you are entitled for refund.
My recommendation is be little friendly with the officer dealing it, just dont go for too much rti or complaints etc.
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Old 14th January 2014, 09:52   #438
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Originally Posted by iamswift View Post
I think you can file rectification for 2009-10 as well.
Recently I filed one.
Thanks for the reply. I read in the rectification manual that one cannot request for rectification if there is a change to the income. In such cases one has to re-file the return within the grace period (one year or within the assessment process). Not sure if this understanding is correct. Now since the grace period is over, is paying the demanded tax the only option?

May be i need to contact the AO. Do I need to visit the IT office or can talk over the phone?
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Old 14th January 2014, 22:48   #439
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Originally Posted by undead View Post
If the Tds return has been filed, ask the acknowledgement number from the deductor if its not mentioned in the form 16a and check on the tin-nsdl website. They might have given incorrect pan number in the return , and that might be the reason. The problem is you need to prove the maximum way possible that everything from your side is correct.
Regarding the bond , yes you can use the link I provided which is from the caclubindia website and its filled with experts there. You can also post your queries there .
Since 16A is clear , you are entitled for refund.
My recommendation is be little friendly with the officer dealing it, just dont go for too much rti or complaints etc.
Hi.
Thanks a lot for your advise.
Nothing wrong with the form 16 A but as mentioned in my earlier post would like to move on and close the matter.
Well said that I should be friendly and that is how I feel.In fact in my last letter I asked her for guidance whether I should escalate to her seniors or file a RTI enquiry. Only after receiving that letter she called me, her first call to me, and asked me to submit indemnity bonds.
Accordingly will do the needful
Thanks a lot for all your help
Regards
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Old 22nd January 2014, 16:49   #440
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

Guys, have a question - Till last financial year, me and my wife had claimed IT benefits on our (joint) home loan. We had given a joint declaration claiming that our percentage of possession to be 70% (me) and 30% (wife). The whole of this financial year, my wife has quit her job and is now a home-maker (temporarily though).

Now, can I claim 100% benefits on our home loan for this year?

P.S: My wife might join start working again after a year or so at which point she would be claiming the IT benefits on the home loan again.
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Old 28th January 2014, 17:48   #441
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Can someone explain to me the rationale behind (actual rent - 10% of basic) as the exemption limit?

X-(
I can't believe how much GOI has taken the salaried class for a ride!

Last edited by alpha1 : 28th January 2014 at 17:49.
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Old 28th January 2014, 18:24   #442
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Originally Posted by callvvijay View Post
Guys, have a question - Till last financial year, me and my wife had claimed IT benefits on our (joint) home loan. We had given a joint declaration claiming that our percentage of possession to be 70% (me) and 30% (wife). The whole of this financial year, my wife has quit her job and is now a home-maker (temporarily though).

Now, can I claim 100% benefits on our home loan for this year?
You need to get the following declaration (to be done every year) signed from your wife (co-applicant), it should say that 100% claim will be done by you (applicant)

TO WHOMSOEVER IT MAY CONCERN
Dear Sir/Madam,

I, __________ (Name & Relationship with co-owner) of Mr./ Mrs. __________, hereby declare that, I will not be claiming for deduction under Section 24 (b) & 80C of the Income Tax Act, 1961 for the period of 01/04/2013 to 31/03/2014 on the housing loan which is jointly taken by myself and my ___________ (Relationship with co-owner). The housing loan from ____________________ Bank (Loan A/c Number _______________ ) will be fully paid by my ___________ (Relationship with co-owner). He/She will be claiming deduction under Section 24 (b) & 80C of the Income Tax Act, 1961 for the period of 01/04/2013 to 31/03/2014.

Quote:
Originally Posted by callvvijay View Post
P.S: My wife might join start working again after a year or so at which point she would be claiming the IT benefits on the home loan again.
Housing loan sections 80C & 24 are not monthly components unlike HRA.
Last year I received NRI salary for 9 months, 3 months INR. I claimed section 24 (Loss on house property) & Section 80c(principal component) for amount paid during the entire financial year 2012-2013.

For example, if you wife is earning an sizeable income being a home maker, it has to declared as "income from other sources" during filling & even in these scenarios she could get tax exemption by showing the interest/principal certificate.


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Originally Posted by alpha1 View Post
Can someone explain to me the rationale behind (actual rent - 10% of basic) as the exemption limit?

X-(
I can't believe how much GOI has taken the salaried class for a ride!
The thinking behind the clever blokes at the IT Department to reduce the maximum tax rebate of the salaried class. Not many observe this trick until their basic salary grows & they start loosing those extra tax.

I used to add 10% of my basic to my declared HRA, this way all the 3 section (company provided HRA, Metro/Non-metro HRA & employee declared HRA) would result in same amount.

Explained in detail under link below:
http://am22tech.com/s/22/Blogs/post/...-In-India.aspx

As my basic component grew, I had to show my rental agreement & enter the landlord PAN details, hence this action was morally/legally not rite.
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Old 28th January 2014, 18:30   #443
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Originally Posted by alpha1 View Post
Can someone explain to me the rationale behind (actual rent - 10% of basic) as the exemption limit?

X-(
I can't believe how much GOI has taken the salaried class for a ride!
The rationale is simply to ensure that people do not misuse the deduction. You would not normally pay rent way in excess of your basic salary. Thats why the IT dept allows the lowest of 3 conditions for House Rent:

• Residence in metro - 50% of salary , elsewhere - 40%
• Actual H.R.A. received.
• Excess of rent paid over 10% of salary.
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Old 28th January 2014, 20:03   #444
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Originally Posted by Mr_Bean View Post
You need to get the following declaration (to be done every year) signed from your wife (co-applicant), it should say that 100% claim will be done by you (applicant)

TO WHOMSOEVER IT MAY CONCERN
Dear Sir/Madam,
.................................................. .......
Income Tax Act, 1961 for the period of 01/04/2013 to 31/03/2014.

Housing loan sections 80C & 24 are not monthly components unlike HRA.
Last year I received NRI salary for 9 months, 3 months INR. I claimed section 24 (Loss on house property) & Section 80c(principal component) for amount paid during the entire financial year 2012-2013.

For example, if you wife is earning an sizeable income being a home maker, it has to declared as "income from other sources" during filling & even in these scenarios she could get tax exemption by showing the interest/principal certificate.
Thank you Mr.Bean! But my question was a bit different (or have I misunderstood your answer?? :P).

I have been submitting a similar form year-on-year (starting 2011 when we bought the house) stating the % claimed by me and my wife on the home loan. I am being told that once the % is fixed, it cannot be changed over the entire tenure of the loan. So, if I have fixed it as 70:30, I cannot change it till I finish off the loan.

Now, my wife has quit her job and is a home-maker for the whole of this financial year which makes the 30% becoming useless as I cannot claim.

So, my question is - is it actually the case that I cannot change the % claim for this year?
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Old 29th January 2014, 11:14   #445
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Quote:
Originally Posted by Lalvaz View Post
The rationale is simply to ensure that people do not misuse the deduction. You would not normally pay rent way in excess of your basic salary. Thats why the IT dept allows the lowest of 3 conditions for House Rent:

• Residence in metro - 50% of salary , elsewhere - 40%
• Actual H.R.A. received.
• Excess of rent paid over 10% of salary.
Quote:
Originally Posted by Mr_Bean View Post
The thinking behind the clever blokes at the IT Department to reduce the maximum tax rebate of the salaried class. Not many observe this trick until their basic salary grows & they start loosing those extra tax.

I used to add 10% of my basic to my declared HRA, this way all the 3 section (company provided HRA, Metro/Non-metro HRA & employee declared HRA) would result in same amount.

Explained in detail under link below:
http://am22tech.com/s/22/Blogs/post/...-In-India.aspx

As my basic component grew, I had to show my rental agreement & enter the landlord PAN details, hence this action was morally/legally not rite.
The point was that say a guy has monthly basic salary of Rs 20000.
He has monthly rental of Rs 10000.

In spite of paying 10K as rent and producing receipts and owner's PAN details, why should he get only (10000 - 10% x 20000) = Rs 8000 as tax exemption?

Why should he pay tax on this Rs 2000, when this 2000 is also going to the owner and the owner is liable to pay tax on it! (as he would on the remaining 8000)
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Old 29th January 2014, 14:47   #446
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I have a query regarding section 80D rebate on Income Tax for purchase of medical insurance.

My office reimburses my medical expenses (including medical insurance premium). Now, since I have claimed reimbursement of premium under medical expenses, am I allowed to further claim section 80D rebate on income tax ?

The finance team in my office claims that this is not correct. An individual should either claim reimbursement OR income tax rebate, not both. Their logic is that I cannot claim income tax benefit under section 80D because I have not purchased the policy from my income (since I have claimed reimbursement for it).

But the funny thing is that they add this amount in my taxable income under medical expenses, which is contradictory to their remark that I have not purchased this policy from my income.

Rohan
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Old 29th January 2014, 14:57   #447
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Originally Posted by callvvijay View Post
So, my question is - is it actually the case that I cannot change the % claim for this year?
We can change the ratios, just confirmed this with my family & relatives since they have done it. Here in our case, applicant had gone on sabbatical leave for an year and the co-applicant declared 100% amount in her IT declaration for exemption. Year prior to the leave, the ratios were 50:50.

I am yet to ascertain if this is legally rite.
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Old 30th January 2014, 14:15   #448
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[quote=faustus77;3335148]Hi.
The income tax department has a toll free number.
It is 1800 180 1961. Quite easily accessible.
Before visiting the office( I personally avoid visiting) please call the CC.
Incidentally I was under the impression that all returns are uploaded and the hard copy posted. Somebody please correct if I am wrong.
Regards[/QUOTe

Rang this number to check on my refund status of Rs 1 Lakh +. They were polite and told me it will come between 3 months and 2years from date of filing. Since this was 2012-2013, I should get this around the middle of this year!
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Old 30th January 2014, 14:46   #449
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Originally Posted by callvvijay View Post
So, my question is - is it actually the case that I cannot change the % claim for this year?
As per your sale deed, the split of tax benefit is given. If the percent is not mentioned in sale deed, it is 50:50.
Now to override the percent as per sale deed, you can give declaration on either full waiver or for percent split - as per your need.

Now this declaration is given each year. So yes, you can change the percent claim.

For this year, you need to get declaration from your wife that is not claiming tax rebate and only you are claiming 100%.

Here is the template. This needs to be filled and signed by your wife.

I, …………………………………………………………….(mention relationship) of Mr/ Mrs ……………………………………………... do hereby declare that in respect of the house property for which he/she is claiming tax benefit under Income
Income from House Property under Income Tax Act 1961 and wherein I am the joint owner thereof, I am not claiming rebate or relief
under the Income Tax Act 1961 for the FY <mention year> as my spouse/co-owner is assessed to tax in respect of this property/part of this
property for which he/she is claiming tax benefits.
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Old 30th January 2014, 14:49   #450
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Originally Posted by rohan_iitr View Post
I have a query regarding section 80D rebate on Income Tax for purchase of medical insurance.

My office reimburses my medical expenses (including medical insurance premium). Now, since I have claimed reimbursement of premium under medical expenses, am I allowed to further claim section 80D rebate on income tax ?

The finance team in my office claims that this is not correct. An individual should either claim reimbursement OR income tax rebate, not both. Their logic is that I cannot claim income tax benefit under section 80D because I have not purchased the policy from my income (since I have claimed reimbursement for it).

But the funny thing is that they add this amount in my taxable income under medical expenses, which is contradictory to their remark that I have not purchased this policy from my income.

Rohan
Medical bills reimbursement exemption is available under section 17(2) and Mediclaim premium under section 80D. Usually, you cannot claim exemption for the same thing and same expenditure under different sections of IT.
Your finance team's interpretation of the exemption is correct AFAIK.
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