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Dipti (Senior Associate)     23 March 2014

Employer deducting unnecessary amount from salary

Hello All,

I’m working for a private organization and I know they are making income tax frauds and also taking unnecessary amount from employees. I know many cases of that. Also, I know many examples of how they are faking the tax i.e. fraud tricks.

1. One example being, they take money from employees as a part of employee welfare which includes dinner parties and outings and then they show in income tax that this has been paid by the company. I know this will be difficult to get as employees will not speak against the company in fear of losing their jobs. So, what can be done in this case?

2. Also, I know of a concrete example in which they have shown a certain amount as a part of employee welfare and at the same time they have deducted that amount from the employee salary saying that this has to be paid by you. That too they took a group outing saying that it is arranged by the company and next we know it was deducted from our salaries saying that it has to be paid. If they had told beforehand we would not have gone to the trip. Is there any way in which employee can get the money?

3. Can I know the details of Income tax paid by a private company?

There are many other examples I know that I can tell if any lawyer is willing to take the case. I don’t want any money but I want that the company should pay the tax properly and should not take unnecessary amount from employees.

Thanks,
Dipti



 3 Replies

Dr J C Vashista (Advocate)     24 March 2014

Collect evidences and intimate IT deparment through some tax consultant

T. Kalaiselvan, Advocate (Advocate)     26 March 2014

Well advised by Dr. Vashista Sir.  You may follow his suggestions.

Kumar Doab (FIN)     26 March 2014

Dr. Vashista has given valuable advice.Kindly follow it.

Dinner parties and outings are not employee welfare.

Deductions from wages/salary is well explained in enactments like Payment of Wages Act, (Name of the state) Shops and Commercial Establishments Act………….

Any deduction other than this has to have explicit private agreement between employer and employee.

Retention of monies for benefit of employer is prohibited……………….

Deduction of amount from salary then claiming IT relief on it may be termed a transgression. However you should show all docs and records to a lawyer handling IT cases/CA…………………before you act.

If your counsel advices complaint to Commissioner of IT may be lodged. The complaint downloaded by the commissioner may not leave any scope for malpractice/corruption down the line.  

The lawyer would advice you where and how to file the complaint.

The employees unions, Trade Unions are sensitive to such matters……………………………….and can be approached.

 

 

 


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