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sinha_audit
16-05-2013, 10:57 AM
I opted for pension under rule 37(1) of CCS (Pen) Rules from my previous department and thus "deemed to have retired" from Govt service. I was relieved on Dec 26th 2012 and joined Autonomous Body on direct recruitment on Dec 27th 2012. The option for pension was exercised on Dec 26th 2012 itself.

My erstwhile employers issued me a letter (Feb 13) stating that around 1 lakh had been over paid in pay and allowances on which I was told to pay certain amount of Income Tax which I promptly paid and despached the challan for issue of TDS at the end of FY 2012-13. I had also requested them to issue a recovery schedule to my present employers so that I may get the benefit of lower IT in current FY.

Meanwhile, previous employers did not act regarding processing of pension case and only now (May 13) they have decided to "adjust" the overpayment from service gratuity payable to me, despite my 4 letters/reminders to them to issue recovery schedule. I will not get any IT benefits if it is adjusted from service gratuity.

What are remedies? what course of action should I take? Had the case processed in time, overpayement could have been adjusted from the gratuity and I would not have end up paying IT, which is futile now.

Please suggest.

sinha_audit
22-05-2013, 12:12 PM
I invite learned opinions of Shri Victor and Shri Pathak.

Victor
23-05-2013, 10:45 AM
I opted for pension under rule 37(1) of CCS (Pen) Rules from my previous department and thus "deemed to have retired" from Govt service. I was relieved on Dec 26th 2012 and joined Autonomous Body on direct recruitment on Dec 27th 2012. The option for pension was exercised on Dec 26th 2012 itself.

My erstwhile employers issued me a letter (Feb 13) stating that around 1 lakh had been over paid in pay and allowances on which I was told to pay certain amount of Income Tax which I promptly paid and despached the challan for issue of TDS at the end of FY 2012-13. I had also requested them to issue a recovery schedule to my present employers so that I may get the benefit of lower IT in current FY.

Meanwhile, previous employers did not act regarding processing of pension case and only now (May 13) they have decided to "adjust" the overpayment from service gratuity payable to me, despite my 4 letters/reminders to them to issue recovery schedule. I will not get any IT benefits if it is adjusted from service gratuity.

What are remedies? what course of action should I take? Had the case processed in time, overpayement could have been adjusted from the gratuity and I would not have end up paying IT, which is futile now.

Please suggest.

I feel either the previous employer should reflect the recovery made in the Form 16 to be issued by him for FY 2012-13 or if this is not possible then issue a Form 16 for FY 2013-14 showing a negative amount.

Alternatively, if the previous employer could formally convey the recovery made to the current employer so that the same could be offset in current year's income.

I am not very sure of the above two options but you could explore these with a tax expert.

Victor