Salary not paid for months but tax paid.

This query is : Resolved

Jaspreet Singh (Querist)
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29 July 2015 Member Since: Jul 2015
My previous organisation has not paid me salary for few months for the last financial year 2014-2015, however they have paid tax to the government for the unpaid salary. The form 16 they have issued to me shows the incorrect total amount paid/credited to me which includes salary for the unpaid months. The same is matching with the form 26 AS as they have paid the tax for the total amount however they haven't paid me the salary. Hence the figures in form 16 and form 26AS are matching. The total tax paid amount paid to the government is obviously more than what is deducted from my salary. This is complete fraud as they want to save from Govt. by paying the taxes but not paying me the salary.

Please help me and guide me in evaluating the actions I can take against them. Thanks in Advance.

Jaspreet Singh

Jaspreet Singh (Querist)
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02 August 2015 Just to add a few things. I left the company after serving them for few months in the last financial year. They stopped paying me when I was serving my notice period. The didn't cleared any outstanding payments after I left them. And when I got my form 16 and cross checked the same with form 26 AS I found they are quoting that they have paid me all my outstanding payments which actually they haven't.

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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22 July 2025 This is a serious issue where your employer has reported and paid TDS on salary that they have not actually paid to you. Here’s what you can do:

1. Gather Evidence
Collect all your salary slips, bank statements showing the actual salary credited.

Keep your Form 16, Form 26AS, and any communication (emails, letters) with your employer about unpaid salary.

2. Raise the Issue with Employer
Write a formal email or letter to your employer’s HR/payroll department asking for clarification and correction of Form 16 and TDS statements.

Request payment of the unpaid salary immediately.

3. Approach Income Tax Department
Since your employer has reported income (salary) and TDS on your behalf that you have not actually received, you can file your ITR declaring only the salary you actually received (not the inflated amount in Form 16).

You should attach an explanatory note stating that the Form 16 and Form 26AS figures are incorrect due to non-payment of salary but TDS was deducted.

You can also file a grievance with the Income Tax Department on TRACES website or through the Centralized Processing Centre (CPC).

4. Legal Recourse
You can send a legal notice to the employer for non-payment of salary.

You can approach the Labour Commissioner or Industrial Tribunal for recovery of unpaid salary.

If you are part of any Employees’ Provident Fund (EPF), you can also raise a complaint with EPF authorities if contributions are missing.

5. Tax Refund Process
Since tax has been paid on the higher salary, you can claim a refund when you file your income tax return based on the actual salary received.

The Income Tax Department will verify and issue refund of excess TDS.

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