SillyDonut
SillyDonut

Tax dilemma

So I had an organisation as an SDE2 and left it within 4 days as I got a better offer. I did not resign through official channels because I hadn't got access to them yet but I left a proper email trail.

Now come tax filing season, I see that the previous org has shown a salary payment to me for two months according to my Form26. This is when I hadn't even updated my bank account with them so I did not receive any salary.

What should I do next? Currently tax filing is on hold and I'll be doing a late filing with a penalty.

16mo ago
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ZestyWaffle
ZestyWaffle
  1. Ask the Company to either pay your salary or reverse the income in Form 26AS (Yes, they can do it by revising ETDS returns).
  2. There is a possibility that they would have shown this as salary payable in their account
  3. One more remote possibility is some insider might have updated their bank a/c details in your name and would have taken salary fraudulently.
    All the 3 of above is possible. So send a mail to Company with a screenshot of your 26AS and your resignation mail trail to proper authority level in the Company. Also in your Form AIS there is an option to give a remark that the reported salary does not belong to you. Then you can file your ITR without that salary. However, as of now the department is not considering these remarks and automated notices are getting generated for difference between income in your AIS/26AS and ITR.
SillyDonut
SillyDonut

Is there a possibility to explain the same to ITR incase they raise a notice? What all proofs would I need? Currently I'm banking on the company reversing the payment but incase they don't do it within the late filing timelines I'll be forced to file with a remark.

ZestyWaffle
ZestyWaffle

The only way to prove that you have not received any salary is the passbooks of your banks. There may also a chance that Company has opened a bank accounted on your behalf and deposited salary. These are wild guesses, unless Company clarifies you wont know. For notices I think you can share your offer letter and copy of resignation along with your bank statements. It all depends on the officer handling your case in case of notice.

FluffyNugget
FluffyNugget
Plivo16mo

Ask CA only since this is really strange case

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