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An employee receiving exgratia payment being compensation for VRS is entitled to claim relief from tax to be deducted at source under sec 89(1) of The Income Tax Act after submission of form 10E alongwith its Annexure as prescribed.The law is very clear that such relief is to be granted by the employer at the time of the payment of the amt.However some banks refused to follow the laid down law even after fulfilling all the requirements by the employees and deducted tax at higher rate than actually payable.
Now the employees will be required to claim the refund of excess tax payment from Income Tax authorities which as everyone know from experience is a costly exercise.Who should bear the burden for monetary loss to be suffrered by the employees for amt.locked with govt.for no fault on their own part.Can they not claim from bank mgt for refusing to obey the laid down rules of the land ?
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