Consultant TDS Filing Process and Income Tax Refund for Retired Government Employees

Dear Seniors,

I have one query, that is, if a government employee is working after retirement with a private organization as a consultant and the company is deducting TDS at 10% from his salary every month.

Please suggest the process to file the TDS, and also, please suggest if he can retrieve his deducted amount after filing the TDS from the Income Tax Department.

Regards,
Shishir

Dear Shishir,

Your company shall file the quarterly eTDS return for the TDS deducted under section 194J for fees for professional and technical services, stating your details of PAN, amount on which TDS deducted, amount of TDS, including the challan details.

Similarly, you can claim the TDS (after receiving Form 16A from the employer) so deducted while filing the annual return and not as a special request to the department. If the total tax liability is more than the TDS deducted, you are required to deposit the self-assessment tax or otherwise claim the IT refund.

In your case, it appears you have the following income:

1. Income from pension
2. Income from business and profession

Take into account both the income and/or any other income for filing the annual IT return for the previous year preceding the assessment year.

Dear Shishir,

If they are deducting TDS at 10%, then they are not showing salary in their return. Instead of salary, they are showing consultancy fees (Professional Fees). You can file the return of your income and claim a refund. There is some calculation based on which one can determine if it is refundable or not. If you want to know more about it, please send me an email.