An employee has not received salary for the past 5 months in F.Y. 2015-16. He has interest income on FDR in the past years, which will continue in the current year also.
He has in the past filed his returns for salary received and interest received plus some small accrued interest as of march ending, for all past years.
Can he file the return for this year for the 7 months salary portion he received and the interest received and accrued on his FDR for this year.
What happens to the TDS deducted by employer, the employer has not paid TDS as it is not appearing in the 26 AS.
Employee Seeks Tax Return Advice for Unpaid Salary and Interest Income; Experts Cite IT Act, TDS Rules. An employee has not received salary for five months in the fiscal year 2015-16 but has interest income from fixed deposits. The employee seeks advice on filing a tax return for the seven months' salary received and interest income. One expert advises that TDS is deductible upon salary payment, suggesting the return can be filed. Another expert explains that under the IT Act, salary is taxable on a due or receipt basis, requiring the employee to file a return for the full year's salary. If the employer hasn't deducted TDS, the employee must pay tax on the full salary. (AI Summary)
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