Facing Salary Delays and Tax Deduction Issues: How Can I Ensure I Get Paid?

Dear friends and seniors,

I worked for a company in BTM Bangalore from June 2014 to December 2014 for 6 months. I received a salary of 23k in hand. For the next 6 months, from January 2015 to June 2015, I received a salary of 24k in hand. In July and August 2015, I received a salary of 28k. My last working day was September 30, 2015.

Now, while paying my salary, the employer is discussing tax deductions and mentioned that it's more than 28k. They are now delaying payment and trying to avoid giving me my September 2015 salary. They are speaking to me rudely and harassing me, stating that I need to submit documents such as a rental agreement and any insurance I may have to receive my salary.

Could anyone please suggest what I should do in this situation? I do not have these documents, and during my joining, they only mentioned a 200 pt deduction, nothing more. They are now accusing me of only requesting not to deduct tax when I had actually asked not to opt for PF.

How can I ensure I receive my full salary without any so-called tax deductions?

Thank you.

Please work out your income financial year-wise from 1 Apr 14 to 31 Mar 15. What was your total income? Then look at the income tax slab applicable for your salary level. You can calculate your tax after taking into account any tax-deductible savings like EPF, life/health insurance, etc.

Thank you, Mr. Nathrao, for your prompt response.

My income for the year has amounted to around 2.72 lakh. I am currently in discussion with a Chartered Accountant, but I am facing several confusions that have been created by my employer.

Your employer can't unrealistically deduct salary in the name of tax deduction. Take computation of income and your liability to pay tax with the CA you are consulting. Post consultation with CA, resolve the matter with your employer.

Thank you for your valuable suggestion, Mr. Ashutosh Mishra.

Actually, the issue is not only about tax. If you can spare a little time to read and suggest something more on my last post regarding harassment from the company.

99%, you will not have any salary tax liability. For the amount paid to you from April to Sept, ask the Employer to provide you with the salary slip, including the breakup. This is an indicative breakup:

Salaries
Basic (Inclusive of D.A): $14,000
HRA @ 40% of Basic: $5,600
Special Allowance: $3,870
Conveyance: $1,600

Medical reimbursement*: $1,250

Benefits
Employer's contribution to PF at 12% or cash in lieu of PF: $1,680
Total remuneration: $28,000

Thank you, Mr. bmktts, for your valuable response. I am really thankful that you have provided me with a brief overview of the salary breakdown. As it is a startup company, they have never provided a breakdown of the salary, citing various reasons. I have requested them for my detailed salary breakdown and tax statement. However, to date, they have only mentioned that they will email me the statement but have not done so. It is clear to me that they are reluctant to pay me, but now I am also seeking assistance from a Chartered Accountant.

For the salary of Rs. 28,000/-, there won't be any tax even if there are no breakups. You can demand that for my earnings there won't be any TDS. Only if your taxable income is exceeding Rs. 2,50,000/- per annum, then only should they consider TDS, and they have to work out how much to deduct.

Thank you, Mr. Jeevarathnam P, for your valuable response. I really appreciate all the seniors who took the time to write to me with their suggestions and support. I am happy to say that I have received my Bal today without any further trouble from them. I am truly encouraged by all your replies, which have given me a lot of confidence in receiving my money in full without any doubts of deductions. Feeling happy :-)