You have posted that:
--“ Appointmnet leeter its not stated as contact labour just clean offer letter and i'm not a confirmed employee too”.
You may check if company has mentioned about permanent post , probation period, age of retirement, break up of salary e.g. basic, DA, HRA, medical allowance etc .
For the components like HRA, medical allowance etc you may submit Rent receipts, meical bills etc and seek relief from IT.
The company is duty bound to ensure TDS whereas it has not deducted Tax each month and now at the time of separation it want to convey an amount verbally and probably do not want to issue any document e.g. salary slip of all months, salary certificate for period of employment of 5 month’s, Form 16 for taxable amount and tax deducted and deposited by it.
It is also not clear that you want to have proper documents or not?
--“ I have joined a company in the month of aug 2012 and i have been given appointment letter as Manager,and have been drawing 38000/- salary by hand ( Hot Cash)”
Company should pay salary and issue salary slip which should be signed by both employee and employer. Company’s post wages/salary as expenses and how would you know what amount with what break up is posted against your name.
If establishment is covered as Factory or Commercial establishment it has to keep proper records as per provisions of these enactments.
You as an employee would need Form 16 to claim refund and file proper IT return. If you have correct Form 16 you can always validate IT return filed by you.
The onus of making correct declarations in your IT return is on you.
--“ they will deduct TDS of 10 % since I'm into the contract labour act”.
You would know what is written in contract of employment/appointment letter issued by company and accepted by you.
You may show it to your labor consultant/service lawyer.
--“ says the rest of the amount they cant pay to me as TDS deductions but over all since august to dec my total salary didnt exceed more than 175000/- ( leaves and deductions )”
You may represent to your appointing authority, MD, Company Secretary and explain in person that amounts disbursed to you are not within taxable limits and you shall compute your income from company { declared by salary slips/salary certificate} at the end of financial year with other income and file IT return.
You may also request for last salary slip and FNF statement showing all payments made to you from DOJ, and IT deducted from final payout to you.
If the FNF statement is not correct you may decline to accept it in writing under acknowledgment.
Valuable advice of learned experts/members is sought.