I joined a company a few months back and had to leave it abruptly because the kind of job profile offered was very different from the kind of role promised . Further there was no proper HR or redress-al mechanism as most of the HR's were located in different offices and I was not comfortable with the environment there . I discussed with my manager at that time and with his agreement I sent him an email and stopped coming to work as it made no sense and I was kept without work for a long time . I also sent back the badge and laptop to the company and received acknowledgements for the same .
The HR called me after week and threatened me with legal action for not serving notice period of one month according to offer letter. . I had not received my salary for the duration of my stay there (about 20 days) and I was not keen on salary either . But they only kept talking about legal action if I dont pay up .. etc .
Recently after about 6 months while filing my IT returns I noticed that my Form 26AS showed a credit of a large amount as salary and also tax credited to Income tax Dept from my PAN account . The situation here is I had not received any money from the company as salary and hence it shows a false statement . And further if I were to consider the salary I would end up paying a large amount as Income tax , since it would then fall in a different tax bracket .
When i asked the company about this , they against started their legal threatening drama and asked me to pay a very large amount as notice pay .
Can you pl suggest what action can I take against this company against the following points
a) Salary not paid
b) False tax credit
Can I now claim the salary amount for my period of stay there , so that I can file my IT returns and corrections properly . I feel the IT Dept would ask me about this and I would have to provide evidence for the amount not paid and I would prefer to avoid that hassle .
If it comes to the worst situation , and I had to pay the notice amount .What would the amount include . Is it just Basic pay Or Basic + other components
Pl suggest accordingly and thanks for your time .
From India
1The HR called me after week and threatened me with legal action for not serving notice period of one month according to offer letter. . I had not received my salary for the duration of my stay there (about 20 days) and I was not keen on salary either . But they only kept talking about legal action if I dont pay up .. etc .
Recently after about 6 months while filing my IT returns I noticed that my Form 26AS showed a credit of a large amount as salary and also tax credited to Income tax Dept from my PAN account . The situation here is I had not received any money from the company as salary and hence it shows a false statement . And further if I were to consider the salary I would end up paying a large amount as Income tax , since it would then fall in a different tax bracket .
When i asked the company about this , they against started their legal threatening drama and asked me to pay a very large amount as notice pay .
Can you pl suggest what action can I take against this company against the following points
a) Salary not paid
b) False tax credit
Can I now claim the salary amount for my period of stay there , so that I can file my IT returns and corrections properly . I feel the IT Dept would ask me about this and I would have to provide evidence for the amount not paid and I would prefer to avoid that hassle .
If it comes to the worst situation , and I had to pay the notice amount .What would the amount include . Is it just Basic pay Or Basic + other components
Pl suggest accordingly and thanks for your time .
From India
In india no agreement can be made on human lifes. So companies dont ask to pau notice pay.
However against wrong tax credit can be proved only if you received the salary on which more credit was to be made.
To get you additional salary you should contact a legal advisor expert in contract laws.
From India, Bangalore
However against wrong tax credit can be proved only if you received the salary on which more credit was to be made.
To get you additional salary you should contact a legal advisor expert in contract laws.
From India, Bangalore
My online Form 26AS shows an entry of Rs X and and Rs Y as tax paid by the company . I feel the company is trying to evade tax or something of that sort .. I am mainly concerned about future tax implications because of the wrong declaration by the company . Because of the false declaration of salary paid by the company , I might be questioned by IT Department and then I would have to try and prove that I didnot receive the said amount of Rs.X . I would like to pre-emptively avoid this and also try and get my dues .
From India
From India
If company have shown the amount of x paid than you are on an advantage to claim your dues. You should have received the x amount in you bank account, if not than send a notice to company for balance money.
From India, Bangalore
From India, Bangalore
Kindly provide the following details.
1. As you have mentioned that you worked for only 20 days was there any probationary period mentioned in your appointment letter? If yes, for how much duration ? Normally, companies do not keep a clause of serving notice period / paying for notice salary during the probationary period.
2. If there is no probationary period & you were confirmed as permanent employee on the day of joining itself, what is the duration of notice period mentioned in the appointment letter ? If there is any clause of notice period, then you will need to pay for the notice period as you have not served the required duration of notice period.
3. As for the wrong credit in Form26AS, ask your company to get the return rectified.
From India, Pune
1. As you have mentioned that you worked for only 20 days was there any probationary period mentioned in your appointment letter? If yes, for how much duration ? Normally, companies do not keep a clause of serving notice period / paying for notice salary during the probationary period.
2. If there is no probationary period & you were confirmed as permanent employee on the day of joining itself, what is the duration of notice period mentioned in the appointment letter ? If there is any clause of notice period, then you will need to pay for the notice period as you have not served the required duration of notice period.
3. As for the wrong credit in Form26AS, ask your company to get the return rectified.
From India, Pune
@gurushree : Probationary period mentioned was for 6 months . They have not mentioned any thing specific about notice period during probationary period , but there is a generic resignation clause which says that they can approach any Court to recover all costs, damages, losses and expenses incurred by the Company if notice period is not served out . It doesn't talk any thing about actual notice amount in terms of salary . And I don't know how they have substantiated a very large amount as notice amount .
Earlier they had asked me to approach them and pay the amount .
What is the default notice period amount in most cases ? Is it Basic only or Basic + other components .
The company has not paid any heed to get the return rectified and only keep playing tactics around the notice period .
From India
Earlier they had asked me to approach them and pay the amount .
What is the default notice period amount in most cases ? Is it Basic only or Basic + other components .
The company has not paid any heed to get the return rectified and only keep playing tactics around the notice period .
From India
Your post is unclear.
How long did you work there ?
How much was your salary
What was the notice period ?
How much is the credit and salary showing up in your 26AS ?
Without this, no one can give the correct answer.
In general, company would pay tds on any provision they have made.
In that case it would appear in your 26AS
However, the income tax department will insist you include the income in your returns. There are provisions that allow you to file an application to income tax officer asking to remove it from your tax statement. Ask your CA for the procedure.
From India, Mumbai
How long did you work there ?
How much was your salary
What was the notice period ?
How much is the credit and salary showing up in your 26AS ?
Without this, no one can give the correct answer.
In general, company would pay tds on any provision they have made.
In that case it would appear in your 26AS
However, the income tax department will insist you include the income in your returns. There are provisions that allow you to file an application to income tax officer asking to remove it from your tax statement. Ask your CA for the procedure.
From India, Mumbai
Dear Sidewinder78
What you have stated, is a recent phenomenon.
I have come across many such cases of such wrong entries in 26AS and statement from TRACES.
Either the company is doing it wilfully or out of ignorance or carelessness. These cases pertain only to people who have left the companies.
Since these reports to IT are system generated; the data based on Annual Income finds mention in 26 AS TRACES, when an individual accesses it after the end of Financial Year (i.e. in the Assessment Year).
It seems the data in the Payroll software is not UPDATED with the event of Cessation?termination of services of the employee; and the software continues to carry the old data of salary till the end of the Financial Year.
Unfortunately, there is no standard remedy provided for such cases.
I think, some solution will be provided by the Income Tax authorities; once sufficient number of representations reaches them.
Warm regards.
From India, Delhi
What you have stated, is a recent phenomenon.
I have come across many such cases of such wrong entries in 26AS and statement from TRACES.
Either the company is doing it wilfully or out of ignorance or carelessness. These cases pertain only to people who have left the companies.
Since these reports to IT are system generated; the data based on Annual Income finds mention in 26 AS TRACES, when an individual accesses it after the end of Financial Year (i.e. in the Assessment Year).
It seems the data in the Payroll software is not UPDATED with the event of Cessation?termination of services of the employee; and the software continues to carry the old data of salary till the end of the Financial Year.
Unfortunately, there is no standard remedy provided for such cases.
I think, some solution will be provided by the Income Tax authorities; once sufficient number of representations reaches them.
Warm regards.
From India, Delhi
@Saswatabanerjee
I was there only for 20 days..and the notice period was 1 month . I feel it may not be appropriate to reveal Financial details .
@Raj Kumar Hansdah : Thanks for your valuable input . Is there any proactive step I can take to remove the income from my Form 26AS , for e.g. writing a letter to the Income Tax Dept OR sending a legal notice to the company.
I am assuming IT Dept might ask me to prove that there is no income paid for which I might have to do some running around and provide bank statements .. etc .
Thanks
From India
I was there only for 20 days..and the notice period was 1 month . I feel it may not be appropriate to reveal Financial details .
@Raj Kumar Hansdah : Thanks for your valuable input . Is there any proactive step I can take to remove the income from my Form 26AS , for e.g. writing a letter to the Income Tax Dept OR sending a legal notice to the company.
I am assuming IT Dept might ask me to prove that there is no income paid for which I might have to do some running around and provide bank statements .. etc .
Thanks
From India
Dear Sidewinder
I think one of the option available for you is to file a correct Revised IT return.
If you have already done this, then you can wait for your refund. If there is a verification then you can reply with the relevant facts based on documents.
On the other hand, you may also send a notice to the company through a legal advisor/ tax consultant/ C.A. or bring this matter to the relevant Income tax circle.
Warm regards.
From India, Delhi
I think one of the option available for you is to file a correct Revised IT return.
If you have already done this, then you can wait for your refund. If there is a verification then you can reply with the relevant facts based on documents.
On the other hand, you may also send a notice to the company through a legal advisor/ tax consultant/ C.A. or bring this matter to the relevant Income tax circle.
Warm regards.
From India, Delhi
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