How to get refund of Income Tax paid in excess ?

[KASTURI SETHI]

Dear  Experts,

The following query has been raised by my brother who is Retired Bank  Manager (Punjab & Sindh Bank);-

'I retired on 31.8. 2018 and return of my income including retirement benefits  was filled on June 19. The Leave encashment amount was 748000/- and exemption on it was for Rs Three lac. I paid tax on 448000/- as my employer deducted the tax @ 20 percent. Now I have come to know that Govt.  has issued an order in which gratuity amount has been enhanced and it is considered that leave encashment rebate is also on full amount, I mean to say full leave encashment is exempted, but to get refund on excess TDS is payable by the Income Tax department  by getting permission. I have also come to know that permission has not been granted by the jurisdictional  Commissioner but the employees who file their case with High Court get decision in their favour. In this situation what should I  do to get refund. Secondly some seniors say that the case can not be opened after five yrs. My refund works out to Rs. 88000/- approximately.'

Any advice please.

Thanks a lot

AI Summary

Retired banker paid TDS on 2018 leave encashment; 2023 exemption increase not retrospective, refund unlikely; s.119(2)(b) possible A retired bank employee paid TDS on leave encashment after retirement in 2018 based on a Rs. 3 lakh exemption then applicable; a later 2023 increase in exemption is not retrospective, so the tax department and Commissioner likely will not grant a refund. Practical remedies are limited to a writ in High Court or a rare discretionary relief application under the tax administration power (s.119(2)(b)), both uncertain and potentially costly; the informal five-year time bar may also hinder ordinary refund routes. The claimed overpaid tax is approximately Rs. 88,000, which may be outweighed by litigation costs.