Income tas & provident fund deducted but not deposited by company
Upendra P Sinha
(Querist) 29 January 2014
This query is : Resolved
I have superannuated from a public limited company based at New Delhi. The company a deducted an income tax of Rs. 3,18,998 from my salary and partly deposited with the IT Department. Therefore they have not issued any Form 16 for the previous financial year 2012-13. Similarly they have not yet paid my dues towards Full & Final settlement. What should I do?
I solicit your expert advice on this.
Rajendra K Goyal
(Expert) 29 January 2014
Form 16 can be downloaded from the Income tax site and can be used to file online return.
There was a case in this regard, decided some time earlier by the high court at Mumbai in the case of taxpayer Yashpal Sahni versus assistant commissioner:
The HC noted Section 205 of the I-T Act said that where tax was deductible at source, the taxpayer shall not be called upon to pay the amount himself to the extent of deduction. The court deduced from the language of this section that once it was established that the tax had been deducted at source from the salary of the employee, the bar under Section 205 comes into operation.
In absence of the TDS certificate, though the employee will not be entitled to avail the credit for the TDS u/s 199, yet he cannot be asked to pay the tax once again because that will amount to DOUBLE TAXATION which is not permissible in law.
(Source: Internet.)
Advocate. Arunagiri
(Expert) 29 January 2014
Give complaint to the relevant departments.
for TDS give complaint to circle office.
For salary dues give complaint to the Labour inspector.
Rajeev Kumar
(Expert) 29 January 2014
No need to differ from our learned experts specifically Goyal sir.
Rajeev Kumar
(Expert) 29 January 2014
No need to differ from our learned experts specifically Goyal sir.
Kumar Doab
(Expert) 30 January 2014
Agreed with Mr. Goyal. The establishment has deducted the TDS hence you are not liable.
The deductor (Employer in your case) can be penalized up to the limits of Income Tax/TDS for non issuance of Form16.
You may write to appointing authority, MD, Finance Manager that signs on Form 16 of the establishment for all dues/payables by company to you and all documents that are to be supplied by the company to you preferably by letter thru redg. Post. And obtain POD from PO (free of cost) and certified copy of run sheet of postman (against a fee of Rs10/.).
Try and obtain an acknowledgment from company even if by email.
The representation submitted by you and reply by company shall serve as a documented ‘Determined debt” on employer.
Unpaid wages is debt on employer. Employees have been contemplating to file criminal complaints u/s 406, 420……………………………and to approach employer as creditors treating unpaid wages as debt on employer.
“An Assistant Vice President of the company succeeded against the employer.”
You may go thru:
Delhi High Court
Argha Sen vs Interra Information ... on 12 September, 2005
http://www.indiankanoon.org/doc/1941604/?type=print
If company has defaulted on payment of wages it must have defaulted on PF, Gratuity, ESIC, Bonus, TDS………….etc
The employees can approach:
--- Trade Unions e.g; CITU, AITUC, INTUC ............................
--- Inspector under (Name of your state) Shops and Commercial Establishments Act
--- Inspector under Payment of Wages Act: applicable to all employees drawing wages up to Rs.18000/pm as per def. of wages in the Act. If you are covered by this act then you and all employees can file common application for recovery of wages. You may go thru Sec;
--- O/o Labor Commissioner
--- ESIC Inspector; at its website ESIC has mentioned wage ceiling for ESIC as Rs.25000/pm
--- RPFC in nearest PF office
--- ITO; TDS where you file your ITR
--- CIT-TDS (jurisdictional) where company files ITR
---Controlling Authority of Gratuity
---Civil Court
You may find another thread as relevant;
http://www.lawyersclubindia.com/experts/Salary-not-paid-by-company-450521.asp#.Uuos3EeBmXU
Guest
(Expert) 30 January 2014
Please check, if the company has shown Rs. 3,18,998 as TDS in your slary slips and not a recovery of something else.
