How to Handle Salary Discrepancies When FORM 16 Shows Full Payment? Seeking Legal Advice

Hi seniors, I am NIKHIL ABROL, an Article Intern (CA). I have a query related to my client who is a salaried employee. He changed his job to a new company and had some disagreements with his seniors. They were not allowing him to quit. Regarding the query, he has been paid less salary than he was entitled to. However, after downloading FORM 16, he found that it shows the full payment to him, which was actually not transferred into his account. Therefore, there is a difference of 2 lakhs.

Legal Course of Action Needed

Kindly suggest the legal course of action that can be taken against his employer.

Thanks & Regards,
NIKHIL ABROL

First thing is to rectify Form 16. The employer will have to modify Form 16 to show the actual amount paid. Put the matter in writing to the company immediately, as the IT department will consider the Form 16 issued by the company as accurate. Legal action can be considered if the company fails to rectify the incorrect Form 16. The company is legally responsible for the correct Form 16 as well.

You should be asking this question to your boss. He would have told you the solution. You need to send a notice to the company asking them to rectify their TDS returns so it shows the correct credit to your account. If they do not do it, you can file a complaint with the ITO concerned.

Salary shown is more than what is received by your client, as per your query. In that case, what is the deduction of TDS on the higher salary?

A S Bhat