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'You can file Form 13 since you have mentioned excess TDS is deducted for the specific fiscal year.'
Anil Rego, CEO, Right Horizons (external link), answers your personal income tax queries.
Arup Banerjee: My employer paid me a certain amount of leave-encashment money at the time of retirement in FY 2013-2014 after TDS. At a much later date FY 2020-2021 this amount has been recovered from my pension fund released in SEPT-OCT 2020 without taking into consideration the TDS amount. I understand from reliable sources that I can claim refund of this excess tax under section 119 (2) B. Could you please guide me about the procedure to claim this amount?
Anil Rego: If excess of Tax is deducted, you can claim excess tax refund while filing your income tax returns. Since you would have already filed returns for FY 2020-21 you need to make modifications to the existing filing by doing a refiling.
Form 16 and Form 16A show the tax deducted at source, while Form 26AS reflects the consolidated TDS. You can file Form 13 since you have mentioned excess TDS is deducted for the specific fiscal year.
You also need to make this claim of excess TDS deducted to the Assessing Officer (TDS) concerned as you have already missed this in the previous filing. While refiling you can attach this claim copy there.
You need to login to TRACES website and go to “request for refund” under “Statement Payment Tab”.
PAN of Deductor should be same as per TAN Master and TRACES profile and should not be left blank.
You can attach the challan for the refund.
Now you can go to refund checklist to proceed. You can select reason for refund and give bank details for refund
If the amount is large enough, you could take the services of a professional to help you in this refund.
Mukesh Majmundar: I have received interest certificate for financial year 2020-21 but in 26AS, the interest shown is higher. I wrote to bank but till date they have not rectified the lapse after 40 days. I have to file return as per 26AS and accordingly file. Due to this I have to pay more tax by amount Rs 1600. What is to be done? Please advise.
Is it advisable to invest in NPS as I have utilised all deductions except NPS? I am in 30% slab and I am Sr. citizen.
Anil Rego: In case of higher interest shown in 26 AS, you need to communicate the same to the concerned bank in writing requesting to make necessary changes. In your case the bank has not taken any necessary action on the same. You can try various escalation measures within the bank to get your issue resolved. So now you need to show this as a proof as a valid explanation to tax authorities. Since you have already filed the return, you can send a notice to the tax department for clarification based on your bank account statement and the 26AS.
Since you are in higher tax bracket, it is advised to invest in NPS to save additional tax.
Rajan V N: I am 45 years old and resigning from my job to start my own business. I have the following queries:
1. I want to ensure that my EPF account is operative till 58 years old so that I keep getting the high interest that EPF provides. How should this be done?
2. At the same time I want the interest earned yearly to be withdrawn. Can this be done by requesting for partial withdrawal every year in EPFO site?
3. Is it mandatory to fully withdraw within 36 months post resignation in which case the above 2 is not applicable?
Request you to clarify as none of the websites clearly states if a partial withdrawal is possible post resignation.
Anil Rego: 1. If there are no contributions made to the PF account for 3 years, the account becomes inactive. As per EPFO rule change as on April 2016, all inoperative accounts will be allowed to receive Interest till 58 years. So you can continue the account and not close the same.
2. Usually, PF doesn’t allow these kinds of withdrawals. You can make withdrawals for house purchase, marriage of self or dependent, education of children etc. Otherwise, year on year withdrawal is not permitted.
3. It is not mandatory to withdraw within 36 months post resignation.
Kachhal Prabhakar: I retired from CG services on 31.03.2021. I paid Rs. 78,000 as advance payment to CGHS for making lifetime CGHS card for pensioner. Please indicate the section under which this rebate is applicable and which FY is appropriate for this rebate for ITR filing purpose?
Anil Rego: The amount of contribution you make to the CGHS (Central Government Health Scheme) qualifies for deduction u/s 80-D from the taxable income subject to a maximum of Rs 25,000 per financial year (Rs 50,000 for senior citizens).
Even if you make lumpsum investment which is higher than the maximum deduction limit you can only claim up to the maximum limit depending on your age.
Also you need to claim this for the financial year for which you have made the payment towards CGHS.
You can find more of Mr Rego's answers here.