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How to claim TDS refund
June, 01st 2017

Last year my FD earned interest of a little over Rs 10,000, but since I failed to submit the Form 15G, the bank deducted 10% as TDS. The bank told me to file tax returns, following which I would receive a refund. The bank has given me an interest certificate. My total income does not exceed Rs 250,000. Please guide me how to file the return online.

Depending upon the source of your income, you need to select the correct Income Tax Return and disclose your total income earned from all the sources. As your total income does not exceed Rs 2.5 lakh, your tax liability will be nil.

You can claim the credit in respect of taxes deducted at source and claim refund in the return of income. Please ensure that the TDS is reflected in your Form 26AS. Once the return of income is processed, you will be entitled to receive the refund of TDS.

I am a pilot and planning to shift to Singapore or Hong Kong or South Korea. I have heard about India’s double tax avoidance policy with Singapore and South Korea. I will be working for more than 183 days in those countries and would be considered as an NRI. Where do I have to pay tax – in India or in the country where I would be working?

Your status under the provisions of IT Act, 1961, will be non-resident as you will not be residing in India for more than 182 days. As a non-resident, you will be required to pay tax in India only in respect of income accrued or received in India.
In respect of your income working as a pilot, I understand that the income will accrue or will be received outside India. You will be liable to pay the tax in the country in which the said income is accrued or received.

I work for a private company and have a salary of Rs 15,000. My company deducts TDS at 10% from my salary. I have no PAN, but am I eligible for the deduction? My employer told me that I would get back the 10% amount deducted once I file my return.

Considering monthly salary of Rs 15,000, the employer was not liable to deduct the TDS. Having deducted the TDS and paid to the government, you will have to claim the refund by filing the return of income.

Without having PAN, you will not be in a position to file the return of income and claim the refund of taxes deducted. You are advised to obtain the PAN and comply with provisions of the IT Act, 1961.

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