Recovery of basic pay with allowances
Ravinder Kumar sharma
(Querist) 14 September 2019
This query is : Resolved
I worked in PSU & my factory gave 1928/- yearly increment in lieu of 480/- in June 2014 by mistake.I retired in Nov 2015. Now they send me letter for recovery of Rs 92062/- in AUG 2019 after four years of my retirement for extra basic pay & allowances paid to me.
Kindly suggest as per law my factory can reduce my basic after 5 years.
Regards.
kavksatyanarayana
(Expert) 14 September 2019
Ji, they can recover the excess amount paid to you.
Sudhir Kumar, Advocate
(Expert) 15 September 2019
is show cause notice prior to reduction of pay retrospectively or they have already reduced pay and now asking recovery.
P. Venu
(Expert) 15 September 2019
As you have retired from service, how the recovery is proposed to be carried out?
Ravinder Kumar sharma
(Querist) 15 September 2019
Sir, I have already paid incometax on extra payment .The extra tax is around Rs 28142.as per IT tax cannot be reversed of fy 14-15& 15-16.
My employer is not adjusting the so called extra amount of tax aid by me from demand of 92062.
Sudhir Kumar, Advocate
(Expert) 15 September 2019
Not clear what you meant in latest post.
when you have already paid tax then why it should be adjusted against any demand.
Have you already conceded that that there was an extra demand which should be adjusted out of the Income Tax you have paid (to IT Deptt not to PSU).
Sudhir Kumar, Advocate
(Expert) 15 September 2019
You are not replying the basic points asked which are intended to see the matter in totality so that best advise could be given to you.
Dr J C Vashista
(Expert) 15 September 2019
Why did you not object to excess payments during June 2014 to November 2015?
Did you notice you are being paid which you are not entitled? Answer is "YES". Therefore, you are liable to refund.
However, income tax paid is a different issue.
It is advisable to consult a local prudent lawyer practicing taxation with relevant documents for proper analyses, guidance and proceeding.
Isaac Gabriel
(Expert) 15 September 2019
The Su[preme court has clearly held no recovery for wrong fixation from the retired employees. Since you had worked in the PSU file a writ petition in the High Court to quash the recovery order.Consult a Service Lawyer.
Sudhir Kumar, Advocate
(Expert) 16 September 2019
@ Mr Gabriel.
His latest post indicates that he has perhaps agreed that there is wrong payment and agreed the same to be adjusted out of Income Tax paid.
Isaac Gabriel
(Expert) 01 October 2019
@ Sudhirji,
The SC has passed orders that no recovery of excess pay could be recovered if the fulat is with the fixation. The operative portion of order CA 3351 t 3354 of 2003 dated 16-12-2008 is furnished
.
“In the result, the appeals are allowed in part, the impugned judgment so faras it relates to the direction given for recovery of the amount that has been paid in excess to the appellants – teachers is set aside and that part of the impugned judgment whereby it has been held by the Division Bench that the amended
provisions of FR.22-C would apply to the appellants-teachers is upheld. We direct that no recovery of the excess amount, that has been paid to the teachers of Secondary Schools, be made, irrespective of the fact whether they have moved this Court or not. We also direct that the amount that has been recovered from some of the teachers, after the impugned judgment was passed by the High Court,irrespective of the fact whether they have moved this Court or not, be refunded to them within three months from the date of receipt of copy of this judgment.”
”
Sudhir Kumar, Advocate
(Expert) 11 October 2019
True. There are such directions of Supreme Court. It is not clear:-
(i) as to from where the PSU intends to recover?
(ii) Has he conceded to the recovery?
(ii) whether he was EPFO subscriber and getting pension from there?
