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Tds and ppf deducted but not deposited

Neha (Unknown) (32 Points)

18 May 2012

My employer has deducted PPF and TDS from my salary for FY 2011-2012, but he has not deposited either of the 2. In Salary slip, it shows its deducted, but we came to know that its not deposited.

I want yo understand

1. How complicated and how serious is the whole situation, on my employer's part.

2. How will it effect me? should I deposit the tax by myself if my employer has not deposited?

FY 2011-2012 is already passed. Do I have time till 31 June to clear everything ?

Kindly suggest

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21 Replies

CA.Varalakshmi.M (Manager-Finance) (482 Points)
Replied 18 May 2012

Hi,

In My view its your employers fault,u ned nt pay tax again as it is already deducted from your salary.

If you have been given Form 16 you can claim TDS while failing your returns,irrespective of payment by your employer.

If I am wrong please correct me.

Tejas Jain (Chartered Accountant) (314 Points)
Replied 18 May 2012

1 ) Its not serious on your part. Its serious on the part of the employer he will have to pay the interest on the same amount.

2 ) the last date of filing the return is 31St July,2012. You can clear the things by that time.

You will get the credit of the amount deducted from the salary.

Neha (Unknown) (32 Points)
Replied 18 May 2012

Thanks for the earlier replies. The employer is just pushing the time for issuing the Form 16.

What about PPF Amount? employer has deducted, but not deposited that either.

Tejas Jain (Chartered Accountant) (314 Points)
Replied 18 May 2012

Don't worry if he does't deposit the amount of PF it will be treated as his income and he will have to pay tax on it.

Ask your employer to deposit these amounts as early as possible

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Neha (Unknown) (32 Points)
Replied 18 May 2012

And also I would like to know,

1. how much will be the interest that employer has to pay ?

This question is related as the employer is not haveing funds to pay our salary since last 3 months. So I would like to understand

2. how serious is the situation, if employer defaults and says he is not able to pay any tax or panelty.

3. How will it effect employees if he doesnot pay TDS and PPF ?

Is it a sinking ship and employees should jump off or is the situation under control ?

(Please execuse for soo many questions, as am in panic and not able to get reliable source of info. Am depending on you guys)

Tejas Jain (Chartered Accountant) (314 Points)
Replied 18 May 2012

Then enjoy the picnic... no need to worry...I will reply your all the questions when you come back after picnic

Neha (Unknown) (32 Points)
Replied 18 May 2012

Hi, perhaps i did not make myself clear, its not picnic, am in panic, i.e. am feeling restless on my future and company future. now please answer my above questions... Thanks :)

Tejas Jain (Chartered Accountant) (314 Points)
Replied 18 May 2012

ohhh Soryy it was my mistake but answering all this que overhere it will be difficult...because it is open to everyone so can you mail me at jaintejas317 @ yahoo.com

AVIJIT (CA FINALIST) (370 Points)
Replied 18 May 2012

The right ans to ur ques "things are under control or not" lies only with ur boss that whether he will be able to pay ur salary which is more important than the taxation part because those are minor parts of the main Salary.

Tejas Jain (Chartered Accountant) (314 Points)
Replied 18 May 2012

I will have to ask some details so it will be easy if you mail me if you don't have any problem

AVIJIT (CA FINALIST) (370 Points)
Replied 18 May 2012

Regarding PF (which as per my knowledge would be RPF instead of PPF) there is no compulsion to deposit. Whereas if employer denies to pay TDS and also denies to issue Form 16 then you may have to pay tax by yourself with interest.

Neha (Unknown) (32 Points)
Replied 18 May 2012

@ AVIJIT, so does that mean that employees are at full loss? i.e.

we lost PPF amount for full year, its interest, and TDS Amount, for which we have proof in form of salary slip.

And employer can get out of this soo easily just by not giving us form 16? is there nothing we can do ?

AVIJIT (CA FINALIST) (370 Points)
Replied 18 May 2012

Obviously there are ways by which you can fight for ur right. But that will be a fight and there are chances of both loosing and gaining. Here you may lodge complaint against youe employer with the concerned authorities for getting ur right.

CA Chandana (CA) (27 Points)
Replied 18 May 2012

u have a right to ask the employer to pay the PF & TDS amounts to the government.

But if the employer has not paid any amount of PF to EPFO... employer has to pay the interest amounts on PF dues. If he paid the amount with interest to govt.and filed PF returns then u can claim u r PF.

If the employer not paid, u can approach concern regional PF office, with the help of officers u can make a petition towards u r employer or Pf department may raise 7A enquiry towards employer.

In case of TDS

employer not deposited U can not get tax benefit. because form 16 will be generated only when the payment is made and TDS returns are filed.

So in that case u ask the employer to pay the amount or ask for the TDS amount which they deducted.

If it is not possible employee will not get benefit of TDS.

If is there any wrong notion kindly give the correct points

1 Like