How do I file tax returns if the original Form 16 is lost in transit?
The Rediff Money Channel presents everything you wanted to know about tax issues, but didn't know whom to ask. Chartered Accountants from Ganesh Jagadeesh & Co are here to remove all your doubts.
I would like to know the following:
a) What is superannuation?
b) What benefits accrue to the employee in terms of tax rebate?
c) What are the benefits to the employee?
d) Is there any lock-in period?
e) What happens if the employee resigns from his job after becoming eligible for superannuation?
— Nagaraj D
Employees' contribution to a recognised superannuation fund entitles you to a benefit of a rebate of 20 per cent of the amount invested under section 88 of the Income Tax Act, 1961.
Under section 10(13) the following payments from the fund are exempt from tax:
a) to the legal heirs on the death of the beneficiary
b) to an employee in lieu of or in commutation of an annuity on his retirement or after the specified age or on his becoming incapacitated prior to such retirement
c) by way of refund of contribution on the death of the beneficiary or
d) by way of refund of contribution to an employee on his leaving otherwise that in the circumstances mentioned in (b) to the extent to which such payment does not exceed the contribution made prior to April 1, 1962.
I have a salary of Rs 9360 from April 1999 and Rs 10800 from October. What will be my tax liability?
— Bharathi
Assuming that the above salary is for the Financial Year 1999-2000 (Accounting Year 2000-2001), your tax liability will be as follows:
| Salary for the Year |
Rs. 120969 |
| (Rs 9360*6 + Rs 10800*6) |
|
| Less : Standard Deduction |
Rs. 20000 |
| Less : Profession Tax |
Rs. 1950 |
| Net Taxable Salary |
Rs. 99010 |
| Tax Payable (Note 1) |
Rs. 9582 |
| Note 1: Tax Liability |
| Rs. 60000-Rs 50000 |
10 % of Rs 10000 = Rs 1000 |
| Rs 99010- Rs 60000 |
20% of Rs 39010 = Rs 7802 |
| Surcharge on Rs 7802 @ 10% |
Rs. 780 |
| Total |
Rs. 9582 |
You can claim Tax rebate on the tax liability by investing in investments specified in section 88 of the Income Tax Act 1961 upto a maximum of Rs 14,000 thereby reducing your tax liability.
I have two questions:
1) I was working in Company A from April 1998 to September 1998 but the original Form 16 was lost in transit. Company A refuses to issue me another original form 16 as it says it is against policy. They have signed a Duplicate Form 16 and given it to me. I then worked in Company B from October 1998 to March 1999. Company B issued an original form 16 for that period. But it refuses to give a consolidated Form 16 as I do not have an original Form 16 from the previous employer. Thus I cannot file a tax return as the IT dept wants an original Form 16. Is there any solution by which I can file the return? I have missed the June 30, 1999 deadline but is it possible to file my tax return? I am not claiming the excess tax paid.
2) I was working with Company A in Karnataka and I got the permanent account number (PAN) there. Company B is in Maharashtra. Can I use the same PAN number while filing return in Maharastra?
— Prasanna Kedilaya
1) As you are having a duplicate Form 16 issued by company A, you can file your return with it. However you will have to attach a bona fide certificate from Company A stating that all the contents in the duplicate Form 16 is correct.
The final date by which you can file your return, as you have missed the cut-off date of June 30, is either of the following:
a) Before the end of one year from the end of the relevant assessment year (1999-2000); or
b) Before the assessment is made.
However, in spite of missing the actual due date (June 30), you are eligible to claim the excess tax paid.
2) The PAN allotted to you can be used for filing your return in Maharashtra. However, you will have to do the following:
a) write a letter to the concerned Ward Officer/Assessing Officer in Karnataka giving him details regarding your change of job to Maharahstra and request him to send all your details to the concerned Maharashtra Ward Officer/Assessing Officer.
b) Similarly, also write to the concerned Maharahstra Ward Officer/Assessing Officer giving him details regarding your change of job from Karnataka to Maharashtra.
By following the above procedure you can file your return with the same PAN allotted to you.
A husband and wife are co-owners of a residential flat having equal share. The flat has only one entrance. If they sell the flat in current year and the sale proceeds amount to Rs 100 lakh, will Chapter XXC be applicable as both co-owners will receive Rs 50 lakh each?
— Bittu
The criteria for obtaining the clearance from the appropriate authority is based on the value of the property which is not divisible between the co-owners. So the property will have to be considered as a single property whose value exceeds Rs 75 lakh.(assuming it is located in Greater Mumbai). Hence the clearance under the section 269UC would be required.
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