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I was employed in a company during the FY 2014-15. I resigned in December 2014. Though no TDS was deducted by the company from my salary, the problem I am facing now is that my former employer is not issuing Form 16 despite repeated requests.
Will it be in order if I file the tax return based on the actual credits of salary in my salary account with the bank? Will the tax authorities accept the bank statement issued by the bank as proof of my salary income in lieu of Form 16?
Rachel Thomas
Form 16 is a certificate for taxes deducted at source. In your case, since there has been no tax deduction, your employer may not be obligated to issue the certificate.
You could file the tax return based on the payslips issued to you each month and cross verify the numbers therein with the actual credits of salary in your bank account.
Alternatively, you could request your former employer for a salary certificate detailing the compensation paid to you during the financial year 2014-15.
My daughter completed her post graduate medical degree from a Government Medical college in Tamil Nadu during FY 2008-09, 2009-10, 2010-11.
She received a stipend during the course. Is this stipend taxable like a salary income? No tax was deducted at source and no Form 16 was given to her.
She paid her tuition fees, hostel rent and mess fees out of this stipend amount.
In case the stipend received is taxable, can the above expenses be claimed as deduction?
Gopala krishnan
We understand that the stipend paid to your daughter is on account of education/gaining knowledge for further studies and not a salary payment.
Hence, the same could be claimed as exempt under section 10(16) of the Income tax Act, 1961.
Reliance in this regard, could be placed on the Chandigarh ITAT ruling in the case of Dr Rahul Tugnait Vs Income tax Officer (2010) 124 ITD 480, wherein it was held that the scholarship/stipend received by a student from college/Government, for pursuing higher studies cannot be termed as salary until a master-servant relation is in force.
The writer is Partner, Deloitte, Haskins and Sells LLP. Send your queries to taxtalk@thehindu.co.in
The writer is Partner, Deloitte, Haskins and Sells LLP. Send your queries to taxtalk@thehindu.co.in
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