Final Settlement - Income Tax

Hello All,

I work for an Indian IT company and was abroad for the past 4 months. While abroad , I resigned and served the full notice period and parted on good terms. I had during this time raised an issue regarding a deduction done in my salary a few months back which seemed like a mistake as the salary dept couldnt give an explanation too. Before the last day I was told that this too will be discussed and settled later along with final settlement. I also had asked them some time for me to submit proofs for HRA,medical and also LTA so that only the required tax be deducted (As I was abroad it was time consuming to arrange someone to vacate my house,collect the rent receipts,LTA bills etc , hence needed time). But in a months time (after my resignation) my settlement was done without really waiting for me to submit my proofs for income tax deduction. Also I had enquired with the salary dept a couple of time on clarity regarding the deduction done earlier and there is absolutely no reply to that. Obviously the settlement was done without this deduction being clarified or refunded.

Here are my queries:

1) Am I right in requesting for the salary dept to give me some time (about 2 months) to arrange the the bills/proofs to be send to them ? Do I have a right to ensure the company considers them ? Also is there a legal requirement that the settlement has to be completed in so many days (that they hurried to complete it without waiting for my bills/proofs)

2) Can I request for a recalculated settlement (after considering the bills etc) ? Or is it upto the employer to consider it or not ?

3) What can I do about the deduction they did some months back on my salary for which I neither received any explanation nor was I paid.

Thanks and pls let me know.

Alex

Don't worry. You will get the refund when you file the I.T.Returns. While filing I.T.Returns, provide the tax saving details.
Pon

Thanks but I want to know instead of waiting for the income tax return can I still ask the company to re do the final settlement and this time consider my LTA/rent bills etc so that the correct tax is only deducted and I don't have to wait for the Income tax refund which is very delayed.
Its only 2 months since I left the company, and I haven't send a mail saying I am accepting the settlement. They still have to clarify on an amount which was wrongly deducted as well. Pls advice.

You can try. Suppose they have deposited the TDS deducted with I.T., they can't reverse.
pon

As Pon has rightly said the TDS has to be deducted and paid to the Government Treasury on 7th of every month, even the return has to filed quarterly, the return can be revised but most of the people does not take the pain of doing it. It is advisable to follow up with your company for the unclaimed bills and the error in the Salary, with regards to excess TDS deducted the only way out is claiming Income Tax Refund, gone are the days wherein the refund use to take time, but nowadays since the return are filed through efiling the refund are made within a span of 3-4 months.