15 February 2013
My client joined as consultant on contract in a Ltd co,with a fixed remuneration. 2 Appointment letter was issued but the contract was not signed 3 Remuneration received for 3 months. 4 fourth month the client resigned through e-mail and carried on duty up to 1st week of the subsequent month.Although contractual agreement provided 3 months notice from either side but since acceptance to agreement not submitted the client stopped attending office. 5 Salary for the 4 th month was not received,but company deposited TDS as is evident from 26AS form available On-line against his PAN No. 6 Repeated reminders through e-mail/speed post was sent by the client for Salary& TDS certificate not received. 7 Request please advise necessary action for recovery of salary/TDS certificate. 8 Since the Co is a reputed Co and the client wants to avoid Legal proceeding considering finance and time please also advise what is the Tax implication against salary not received although TDS is deposited by the Co in 4 th month.
In case TDS is deposited but salary not paid, if that income is not shown in the ITR you will get query from IT dept for showing lesser income since employer had shown it as salary payout.
Whether there was any acceptance to appointment letter submitted by your client to company?
If yes then they can with held their salary if appointment letter mentions condition of serving 3 months notice period even though no agreement signed. And salary will be taxable in the hand of your employee even though same is not received.
TDS on Salary is Deductible on Payment Basis Only. This Thing Your Client Must Discuss Over Phone or Personally Meet With HR Dept. May Be They have paid TDS Wrongly ?
20 February 2013
1.Can he go to consumers court? 2.Based on the application to consumers court can he apply for relief for not inclusion of Salary not received in his IT return