Head - Human Resources
Hr Consultant
S?w Engg
+1 Other

Hi, I paid my son's school fees (1st instalment - Rs 42400) on March 28th of 2016 for the year 2016-17 after the circular from school was issued. When I submitted the challan as investment proof in my organisation. The 1st installment was rejected and and only the 2nd which was paid in Sept 2016 was accepted. The reason being only expenses on & after 1st April 2016 are accepted.
What I fail to understand is the payment was done for the academic year 2016-17 starting April & I had to pre-pay it considering Holidays and online payment issues.
Kindly help.
Sandip Das
10th January 2017 From India, Bangalore
80C claims are actual payment basis, not based on advance / arrear period payment or accrual basis it takes effect on the date of payment basis,
10th January 2017
Hi Sandip, Though you have made the payment for the year 2016-17, the investment (fees) was done before 1st April and many companies will not consider that for the investment proof.
10th January 2017 From India, Bangalore
Dear Sandip,

Your employer has rejected your first installment as it was relate to AY 2016-17 hence subjected to revision of TDS return. Any way since you paid toward the child's fees are permitted as deduction u/s 80C therefore you can consider this installment in you income tax return. I presume you have already filed your income tax return because the due date was 07/08/2016 of AY 2016-17. However still if you have not claimed the deduction of first installment and return has already been filed. Revise the return if it was not belated return also the assessment has not been done by income tax deptt. In case if you have filed the belated return and the assessment thereof has also been done. In this scenario you can file rectification u/s 154 of income tax act. 1961. As per the CBDT instructions No. 01/2016 dated. 15/2/2016 within the period of six month income tax deptt. Has to issue the rectification order u/s 154(8) of the act Considering the last date of the month wherein the tax payer has made the application for rectification. If within the six month No rectification order is issued by Income tax then the rectification application shall deemed to be lapses or reject the claim. The period to file the application for rectification is four years form the end of the relevant AY i.e. for AY 2016-17 the assessee can file rectification upto 31/03/2021?

Thanks & Regards


HR & Labour Laws Advisor
12th January 2017 From India, Agra
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