Settlement out-of-court
V.N.K. MENON
(Querist) 14 November 2015
This query is : Resolved
Good Morning!
I was working in a private sector company.
1) TERMINATED IN 2002. Industrial Award is 100% in my favour [reinstatement, full backwages, continuity of service with all consequential benefits].
2)award PRONOUNCED ON 01.08.2006. Employer filed WPC in the garb of appeal in disguise.
3) IN 2009 I was given 17-B relief from date of award 01.08.2006 to date of reinstatement. Obviously reinstatement was done in 2009.
4) MAY 2012 Retirement. WPC is still on board in High Court.
5) In the meantime I filed an SLP in the Supreme Court for expeditious early hearing in high court as high court declined it. Supreme Court appreciated the necessity of giving justice to a disabled senior citizen during his life-time & directed the high court for expeditious early hearing and dispose of the same within 3 months.
6) In the High Court the employer expressed willingness to settle the matter out-of-court. Settlement is a lumpsum amount without any breakup. My query is-
Tax will be deducted. For claiming refund:
a) Whether HRA, conveyance, LTA and medical accrued during the period can be shown for rebate?
b) By the way COMPONENT OF GRATUITY is less than 10 lakhs.
C) Present proposed settlement is from termination in 2002
WHAT IS THE IMPACT ON ABOVE?: (i) Keeping in mind the fact that tax was deducted from interim relief paid in 2009 u/s 17-B for the period 01.08.2006 to 2009 and I got refund from IT Dept by claiming HRA during that period.
(ii) Retirement was in 2012 and wages were paid during reinstatement from Feb 2002 to 2012.
I hope I am able to present the matter threadbare.
SHALL BE MUCH THANKFUL FOR CONSIDERED COLLECTIVE WISDOM OF EXPERTS AS I HAVE TO SPEND REST OF LIFE, PLEASE.
V.N.K. MENON
(Querist) 14 November 2015
Corre3ction in para-6 (c):
"(ii)Retirement was in 2012 and wages were paid during reinstatement from Feb 2009 to 2012". Wages during this period did not attract tax being below the threshold.
Rajendra K Goyal
(Expert) 14 November 2015
Consult local tax consultant and discuss in detail.
Kumar Doab
(Expert) 14 November 2015
You could get rebate on HRA.
Wages as per you are below tax threshold.
Gratuity is below Rs.10 Lacs, so not to be subjected to tax Treatment.
Consult your tax consultant/CA.
If you have to suffer tax liability,negotiate with employer and explore the possibilities so that it compensates you, in a manner that is possible.
R.K Nanda
(Expert) 15 November 2015
have a permanent lawyer for ur so many queries.
V.N.K. MENON
(Querist) 15 November 2015
Mr. Nanda & Mr. Doab,
I am a lawyer, but not practising because of case with employer. I have a CA friend in hand who previously helped me. If this case with employer is settled, I shall resume practice. The purpose of my query is for obtaining collective wisdom of ld. experts so that a correct route can be taken out of it taking in mind the above facts - this is late PM Morarji Desai's wisdom.
In the past also I had got correct route through discussion with L/C members- Thanks
Presently I am doing drafting job for a senior person.
Profound thanks and regards,
