intentionally employer deducting tax even after accepting proofs

[Sachin Erande]

Hi

I am working at XXX. I have resigned and my last day here is 31st Dec 2019. I have submitted PPF and HRA receipts to employer, they have approved in their internal portals and I have proof of that mail.

Now for Dec salary they have deducted huge tax not considered 80c as well as HRA.

I understand they are doing intentionally.

Whom can I approach so that I can take action against employer ?

please advice earliest. Thank you.

[Ganeshan Kalyani]

You can ask the concern HR person for the clarity. Otherwise you can claim these deductions while filing your Income tax return.

[Ganeshan Kalyani]

Don't fight with the company. It is not good. Solve the issue amicably.

[KASTURI SETHI]

Right advices given by Sh.Ganeshan Kalyani Ji. The querist can get refund on the basis of Income Tax Return for the Financial Year 2019-20. Maintain cordial relations with the company as advised by Sh.Ganeshan Kalyani Ji. Pl. note that when you apply for a job in an other company, that company will make queries about you not only from this company but also from other cos. where you have been posted prior to the present job. You will invite negative report if you have strained relations with any company where you have worked.

This is practical approach. Rest decision is yours.

[DEV KUMAR KOTHARI]

Employer can have policy for submission of documents for deduction by a particular date. Therefore, if these were submitted after such cut off date, then as a policy, the operational officer of employer cannot accept and give effect to documents submitted after cutoff date. However, in case of large organization 31 January is reasonable time for such cut off date because any short fall in TDS can be covered in February and March without making substantial reduction in take home salary . Check what is cut off date fixed by your employer. If you had submitted documents belatedly, still you can request the employer to consider the same and make proper adjustment for TDS because December to March ( four months are available for adjustments of TDS). The employer has time and option to reduce your TDS for the month of December or earlier period and make necessary adjustments in TDS remittance, adjustments and returns for PYE 3103.2020. It will depend on co-operation of tax team and you can also point out this to senior officers of employer company to make policy as 'reasonable policy', This will also be a measure of employees welfare with due legal compliance. If there is employees grievances redressal committee, in employer company, you can approach such committee or write to the CMD with request to make reasonable policies for convenience of employees.

[Ganeshan Kalyani]

Sri Kothari Sir, happy to see you in Discussion Forum. You are already a star in Article section. Your articles enlightens us. Your article apparently shows the depth of your knowledge over the topic you write.

Your reply to this query covers all the aspect. The querist got all valuable views from experts. Now, it depends upon him to choice on course of action to be taken.

[Sachin Erande]

Hi All, Thanks for sharing views and knowledge on matter.
Day before, I escalated matter and they agreed to consider and adjust extra tds deducted, in Jan.

Topic discussion thread can be marked resolved.

[KASTURI SETHI]

Dear Querist,

We are happy that you have reached your destination.

Dear Sh.Kalyani Ji,

You have echoed my heart-felt feelings about Sh.Kothari, Sir. I am thankful to him for enrichment of my knowledge in the field of Income Tax. His reply is comprehensive and full of legal force.

AI Summary

Employer TDS deduction despite submitted proofs may be remedied by HR adjustment or refund via income tax return. Employer deduction of tax despite accepted proofs raises a payroll compliance issue; primary remedies are internal resolution with HR and payroll to secure retrospective adjustment where proofs were accepted before payroll cut off, and claiming corresponding deductions and refunds through the annual income tax return. Employers may rely on a documented cutoff date for submission of proofs; employees should check that policy, request senior tax team intervention or use grievance channels to obtain reasonable adjustment, which can be reflected in subsequent payroll months and statutory tax returns.