Unpaid Salary but Taxes Deducted: How Can I Legally Address This Fraud?

My previous organization has not paid me salary for a few months for the financial year 2014-2015. However, they have paid tax to the government for the unpaid salary. The Form 16 they have issued to me shows the incorrect total amount paid/credited to me, which includes salary for the unpaid months. The same matches with Form 26AS as they have paid the tax for the total amount but haven't paid me the salary. Hence, the figures in Form 16 and Form 26AS are matching. The total tax amount paid to the government is obviously more than what is deducted from my salary. This is complete fraud as they want to save from the government by paying the taxes but not paying me the salary.

Please help me and guide me in evaluating the legal actions I can take against them. Thanks in advance.

Regards

I suggest you take legal opinion before any action.

How is it you didn't realize that salary was not paid to you? They would have to inform you of this.

All the best.

Thanks for your reply. I left the company after serving them for a few months in the last financial year. They stopped paying me when I was serving my notice period. They didn't clear any outstanding payments after I left them. When I got my Form 16 and cross-checked the same with Form 26AS, I found they are quoting that they have paid me all my outstanding payments, which actually they haven't.

Kindly be precise - how many months did you work? How much tax is deducted? And lastly, for how many months were you paid, and how many months were you not paid but credited TDS to form 26AS? According to you, they stopped paying you when the notice period began. How many months was the notice period? Legal action for the recovery of salary during the notice period will have to be filed.

Please let me know if you need any further assistance.

The tax laws are very clear. TDS is to be deducted and credited to your account for salary due to you irrespective of whether it is paid to you or not. They are not concerned with your payment. So the company has no option but to pay the TDS amount to your account. The Form 16 talks of the amount credited on account of salary, not the amount paid. How to recover your money depends on what you did, why they didn't pay you, and the actual circumstances that are not a part of your post.