Salary not paid

375 views 4 replies

Ashutosh

Manager

29 Points Joined July 2013

Hi, I would like to get advice on salary not paid by the company in current financial year. Let me brief, I joined a company and worked for 5 months as they were not paying salary on time. I left that company in mid Dec 2015. Company has not paid my 1.5 months of salary which they kept on hold and promise to pay with my Full and final. It's more than 3 months and I don't know when they will pay the dues. So, the questions: 1. Company deducted tax from my salary for both paid and unpaid(1.5 months). But it doesn't reflect on my Form 26AS. What should I do? Who is responsible for that? Should I ask my employer to submit? 2. Company has not paid 1.5 months salary. Should I show this unpaid amount in my ITR? 3. What if company pay the due amount after 31 march? or company doesn't pay at all. 4. Should I take some legal action against my past employer? Please suggest, what steps should I take to ensure with income tax compliance. Regards, Ashutosh

Replies (4)

Sandeep Garg

Consolidation and IndAS Application

1056 Points Joined May 2010

You can take a legal action against company...but since the company is not able to pay salaries, it may be having unpaid dues of Banks and creditors as well. and lots of legal cases must be already there against the co. so you will add one more case which will cost to you only.

Company did not deposit TDS so it is default in IT act and IT authoritities will take care of it.

Company will issue Form 16, basis which you can file your return on accrual basis and not required to do anything when actual cash is received.

manoj

student

5205 Points Joined February 2009

first you will be taxed on salaries due or paid whichever is earlier basis

second ask the FORM 16 from company if it shows deducted TDS But not paid then you claim plus fight

Amit Tiwary

SERVICE

39 Points Joined December 2008

Hi, I believe you are not required to pay tax on unpaid salary. Tax on salary can be paid in the year of receipt. As regards TDS is concerned, although your employer is assessee in defalut under TDS laws but that does not absolve you from the responsibility from clearing off your tax liability. So in such case where you have received your income but your employer has not remitted the Tax collectef, you will have to settle your tax liability on account of income earned.