TDS Deductions & PF Settlement. - CiteHR
S.Kumarasubramanian
Legal & Hr Manager
+2 Others

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Hi,

I have resigned from one of the IT company from Hyderabad by sending an 1 month advance notice dated 08/Dec/2006 and sent a reminder on date 2 Jan 2007 for HR and Account department that my last working day in the company is 9th Jan 2007 requesting them to complete the Full & Final Settlement by 9th Jan 07 specially that is Form16/ Form12B which is required for me along with other documents but as on date I have not received the FORM-16/PF transfer, however I have received the some amount in form of bank cheque from Accountant who has personally handover to me because I expressed inability to come to ex-company as I 'm out of state..so without know how much the calculations are happened I have received the cheque from him... After that i have started calling accounts department to get the FORM-16 as well as PF transfer or atleast provide full and final settlement details...but no help provided to me..

So I have escalated to HR department they have not responded to me... I have finally escalated the issue with the ex-reporting manager who is one of the board member of the company intervened and sent a reply saying that I need to submit some bills for calculating the TDS deductions and also claimed that I aware of the Full & Final Settlement details which I'm not...so I requested them to send the full & final settlement details but they claimed its internal document.

"We are not giving hard or soft copies of settlement details since it is an internal document but the candidates can take down the details in writing if they so wish.

I believe [myname] is to submit his medical and LTA bills which are mandatory for calculation of TDS . He has been in touch with Accounts over this issue. Without submission of these bills form – 16 cannot be prepared. If he is late in filing his IT returns it is he alone who is responsible and he is being made aware of requirements from his side repeatedly over phone . "


After repeatedly calling HR department and sending email to ex-reporting manager who is one of the board member of the company requesting for full and final details, finally I have received the full and final text copied in the email showing the TDS deduction is done for some amount... I'm not understanding what should i do next? (Email received from HR on September 18, 2007 )

To my surprise that I see the full and final details showing that TDS is already deducted for some amount, it seems that they are harrasing me so that not to provide the FORM-16 and PF transfer etc.

They claims I need to submit the bills...which I'm not sure...even If i don;t submit the bills I wonder why they have not taken into consideration of form-16..

What should i do next.... please advice...

Regards

Srinivasa

Dear Friend,

I am not getting what you mean to say and what is the procedure being followed in your previous company.

But to my knowledge if you want to withdraw your PF that is possible without your previous employer's seal and signature.

Provisions are there for that.

If you want to transfer your PF accumulation amount in your previous PF A/c No. from your previous employer in to your current PF A/c No. through your current employer by filling Form 13, it is also possible.

If you have put in minimum of six months of service with your previous employer and if you want to withdraw your PF,you will get all the 24%(employer 12% and yours 12%)claiming it through Form 19.

If you have put in less than 6 months of service with your previous employer then you will get only 12% of yours and 3.67% of your previous employer which amounts to 15.67%.

The Balance 8.33% contribution of your previous employer will go to your Pension A/c.

Even otherwise to do so you have to wait for 2 months and have to state in that application that I am not employed for the past two months like that.

That is why it is advised to transfer it through Form 13.

By doing so even if you have put in less than 6 months of service with your previous employer all the 24% gets transferred.

Kindly note that throughout India Social Security Number(SSN) issuance process by the PF Authorities started w.e.f. 3rd week of August 2007. That date onwards no application whatsoever will be accepted by the PF offices anywhere in India without submitting the SSN application.

The SSN is like your PAN.

For easy process they are introducing it.

By quoting your SSN you can trace and know the status of all your PF related documents(past, present and future)by sitting anywhere in the world through online.

Even if you forget to file something,get something, return some thing or forgetten to get some of your eligible amount it will be definitely lying in your SSN related customer ID. You can get it whenever you come to know about it or when you remeber about it by quoting your that SSN. Ofcourse it will take some more time to get it implemented succesfully throughout India for each and every employee let him be a TCS employee or an ordinary small scale industry employee in a remote village.

As far as the Form 16 TDS is concerned I don't thing no company (how big and advanced it may be) can give to any of its employee either previous or current on or before 1st week of April.

Regards,

S.Kumarasubramanian


First of all I want to Thank you all for prompt responses.. especially CiteHR team for getting this website up and helping all
Kumarasubramanian,
Thank you very much for detailed explaination and I understood the process which you have explained me. I have resigned the company in Jan 2007 and struggling to get the FORM-16 and PF transfer from previous company.. they are helding up my form-16 for the reason I have not giving bills which I'm not aware.. If i have not given why they have not taken in full and final settlement? What should I do next?
Mohammed,
Thanks for provide links
Regards,
Srini

Dear friend,
It is very simple. If you have not submitted the bills, then that much amount will be shown as part of your salary earnings. So the TDS will be more for you and the same will be reflected in your Form16 which they will be giving you any way either in April, May or in June. Because based on that form 16 you can file your IT return on or before and upto 31st July.
Why don't you submit the bills even now by registered post. I don't find any logic behind your question of why they have not deducted from my Full and Final Settlement. Why should they do so. It is not their problem. it is your problem. If you give bills it is oh k for them to calculate the TDS accordingly. If you don't there will be more TDS for you which will be reflected in your Form16. So pay more Tax, Simple.
Regards,
S.Kumarasubramanian

Please Help Employer has given bonus to employee after deducting TDS. Now due to some issue employee is leaving job. Now he(Employee) wants confimation that What if Employer refuse to give Form 16. What will be the situation if employer say in future that i have not deducted TDS on payment made to employee. How we can prove that employer has deducted TDS on such amount. Employee is not having any proof of such Bonus calculation as it depends on employee performance.
Dear Srinivas, It is wrong on part of company to refusing to give hard/soft copy of the settlement computation. You have every right to get the copy of settlement sheet. It is not internal document. Have you availed LTA or medical reimbursements during your employment for which you have undertaken to furnish the proof of LTA bills or Medical Bills. If you have undertaken to furnish the proofs and you have not furnished the proof they can deduct the TDS. However, Form 16 has to be issued for the same. It is mandatory and should not refuse. Not issueing form 16 attracts penal action under IncomeTax Act. Further, with respect to PF, you should have your PF account No. in your payslips. You can apply to Commissioner of PF directly. Just visit site of commissioner of PF and get the details of grievence officer and send a copmpaint to them. I need more details of the case to express best possible way to approach. Sometime due to wrong perception, even small things appears to be big and we get into confrontation. You can mail me the details to my mail id Vishwanath
Dear All,

I used to work with a non profit organisation and have left the organisation after completing 3 years.Now they have a trust and it manages the Provident fund of employees but its again a CA firm who does the calculations (external vendor).I have been sent the computation of the tax and it has been calculated every year.At the same time to make sure, i have consulted with a CA firm and as per them the computation of all the tax accumulated every year cannot be reopened (only an assessor can) and the total of tax computed for the all the financial years needs to be charged/calculated for that financial year in which the payment is to be made to the employee.The trust has actually calculated the tax for every year and has charged separately every year which has increased the amount.

I have spoken to the person who has done the calculation and he has advised me to check section 111 of the Income Tax Act, 1961. The detailed provisions are given in Rules 8, 9 and 10 of Part A of The Fourth Schedule to the Income Tax Act, 1961.

Can someone please help me to understand about the rules although i have gone through it,i am not able to grasp clearly.All i need to understand is-

1) Is the statement "that the tax calculated for all three financial years should be charged for the particular financial year when the employee would be paid correct?.If yes kindly highlight the line which reflects so that accordingly i could get in touch with the person and stand my ground.

Please advice

Much Appreciated

Hi All Seniors, I am new in HR and i want to ask about the TDS. Who is prepare TDS for a Institutes. It is HR KRA’s or Accountant KRA. Pls confirm..
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