TDS in Salary of the FCI officers

The Tax Deduction at Source are being made in payment of salary before it reaches the taxable income. The TDS starts from the salary of the month of March / April of the financial year. Whereas the salary paid is not reaching the taxable income for cat IV, III and II.As the exemption limit is of Rs2.00 lakh, the TDS is correct if the income reaches beyond the exemption limit after taking into account of the CPF deduction, declaration of house rent paid and savings etc. Even the cat I officers needto pay TDS only from the salary for the month of May / June of the financial accounting year. The FAP is not having the provision for this arrangement it seems. The TDS may be made after the exemption limit of the 2.00 Lakhs at 10% from 2.00 to 5.00 lakhs and 20% from 5.00 to 10.00 lakhs and so on. This will be helpful for all in particular for the retiring officers in the mid of the financial year by super annuation of by VRS or by resignation.
May the FCIOA would take up the matter at appropriate level if the above is correct.

As per provisions of the Income Tax Act one is required to pay advance tax equated for every month if the expected tax liability for a given financial year exceeds Rs.5000. All persons are required to furnish savings declaration within 15th March of the previous financial year to avail benefit for the next financial year. The FAP system has provision to include any savings declaration so furnished which computing expected tax liability. For retiring persons also, as retirement date is included in the system, tax projection is done accordingly.

Earlier at local level some of the drawing and disbursing officers were not following the scpecif provisions of the Act and illegally allowing benefit to the employees in the initial months leading to penalties on FCI. With introduction of FAP, this has been rectified.

Hence, there is no cause to take up.

Thank you for valuable clarificatios sir.

Advance tax schedule: As per income tax rules, 30% of income tax should be paid by 15th Sept, 60% by 15th Dec and rest by 31st March. If its not followed one may be charged interest penalty u/s 234C.


Read more: http://www.pankajbatra.com/finance/income-tax-calculator-2012-2013-2014/#ixzz2F2eOFjen

The extract from one of the site posted for member's information as the FCI making TDS on Retirement EL encashment of more than Rs 3lakhs

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Finance
Can you claim income tax refund if you fail to file revised return within time limit?
Financial Express  Financial Express 8 hours ago
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tax assessment, revised tax assessment, revised ITR, ITR filing, income tax returns
No return can be filed post the prescribed period.
By Chirag Nangia

1. Can I get refund of tax for assessment year 2018-19 as date of filing revised ITR expired on March 31, 2019 and I did not claim refund of arrears as I was not aware of Form 10E?

– Pradeep Gaur

The Income Tax Act, 1961 has explicitly laid down the time limits for filing of original and revised tax returns which need to be adhered to strictly. No return can be filed post the prescribed period. In case you fail to file a revised return within the time limit, you shall not be eligible to claim refund.

2. My former employer deducted TDS every month in 2017 and 2018, till I left in March 2018. Form 16 was not given to me and the firm did not deposit the money to the I-T department. What should be done?

—Meher Chandra

As per Section 205, if tax has already been deducted on the income under issue, the taxpayer cannot be called upon for payment of tax to the extent to which tax has been deducted from that income. As a remedial action, you can alert the tax department about the deduction of tax and subsequent non-deposition by the employer by making a complaint in writing. Maintain the proofs of your salary slips and other relevant documents available with you. Internal guideline have also been issued to tax officers emphasising that assessing officers shall not enforce demands created on account of mismatch of credit due to non-payment of TDS amount to the credit of the government by the deductor.

3. Government employees are eligible for 100% tax exemption under Section 10 AA on leave encashment at the time of retirement. But banks are deducting tax on leave encashment beyond Rs 3 lakh. Are bank employees eligible for 100% on leave encashment at the time of retirement?

—T Brahmeswara Rao

"Leave encashment received at the time of retirement by government employees is fully exempt from tax". For non-governm-ent employees, exemption is limited to the least of: (a) amount received as leave encashment (b) amount prescribed by the government, i.e., Rs 3 lakh, (c) 10 months’ average salary immediately preceding the retirement (d) unavailed leave balance subject to maximum up to 30 days’ leave for each completed year of service. "Where bank employees are government employees, they should be eligible to claim 100% tax exemption of leave encashment".

My opinion: As the FCI employees are Government employees they are eligible for full(100%) exemption of Earned Leave encashment on retirement / Super annuation