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
From United States, Dearborn
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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
From United States, Dearborn
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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
From India, Madras
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1I 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
From India, Madras
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First of all, I want to thank you all for the prompt responses, especially the CiteHR team for getting this website up and helping everyone.
Kumarasubramanian, thank you very much for the detailed explanation, and I understood the process you have explained to me. I resigned from the company in January 2007 and am struggling to get the Form-16 and PF transfer from my previous company. They are holding up my Form-16 for the reason that I have not provided bills, which I am not aware of. If I have not provided them, why have they not taken it in the full and final settlement? What should I do next?
Mohammed, thanks for providing the links.
Regards,
Srini
From United States, Dearborn
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Kumarasubramanian, thank you very much for the detailed explanation, and I understood the process you have explained to me. I resigned from the company in January 2007 and am struggling to get the Form-16 and PF transfer from my previous company. They are holding up my Form-16 for the reason that I have not provided bills, which I am not aware of. If I have not provided them, why have they not taken it in the full and final settlement? What should I do next?
Mohammed, thanks for providing the links.
Regards,
Srini
From United States, Dearborn
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Dear friend,
It is very simple. If you have not submitted the bills, then that 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 anyway, either in April, May, or in June. Based on that Form16, you can file your IT return on or before and up to 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 okay 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
From India, Madras
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It is very simple. If you have not submitted the bills, then that 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 anyway, either in April, May, or in June. Based on that Form16, you can file your IT return on or before and up to 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 okay 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
From India, Madras
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Employer has given a bonus to the employee after deducting TDS. Now, due to some issue, the employee is leaving the job. The employee now wants confirmation of what will happen if the employer refuses to provide Form 16. What will be the situation if the employer claims in the future that they did not deduct TDS from the payment made to the employee? How can we prove that the employer deducted TDS on that amount? The employee does not have any proof of the bonus calculation as it depends on the employee's performance.
From India, Pune
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From India, Pune
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Dear Srinivas,
It is wrong on the part of the company to refuse to give a hard/soft copy of the settlement computation. You have every right to get a copy of the settlement sheet. It is not an 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 be refused. Not issuing Form 16 attracts penal action under the Income Tax Act.
Further, with respect to PF, you should have your PF account number on your payslips. You can apply to the Commissioner of PF directly. Just visit the site of the Commissioner of PF and get the details of the grievance officer and send a complaint to them.
I need more details of the case to express the best possible way to approach. Sometimes, due to wrong perception, even small things appear to be big, and we get into confrontation. You can email me the details at my email id
.
Vishwanath
From India, Bangalore
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It is wrong on the part of the company to refuse to give a hard/soft copy of the settlement computation. You have every right to get a copy of the settlement sheet. It is not an 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 be refused. Not issuing Form 16 attracts penal action under the Income Tax Act.
Further, with respect to PF, you should have your PF account number on your payslips. You can apply to the Commissioner of PF directly. Just visit the site of the Commissioner of PF and get the details of the grievance officer and send a complaint to them.
I need more details of the case to express the best possible way to approach. Sometimes, due to wrong perception, even small things appear to be big, and we get into confrontation. You can email me the details at my email id
Vishwanath
From India, Bangalore
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Dear All,
I used to work with a non-profit organization and have left the organization after completing 3 years. Now they have a trust that manages the Provident Fund of employees, but it's again a CA firm that 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 according to them, the computation of all the tax accumulated every year cannot be reopened (only an assessor can), and the total tax computed for 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 understand the rules? Although I have gone through it, I am not able to grasp it 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 advise.
Much Appreciated
From India, New Delhi
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I used to work with a non-profit organization and have left the organization after completing 3 years. Now they have a trust that manages the Provident Fund of employees, but it's again a CA firm that 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 according to them, the computation of all the tax accumulated every year cannot be reopened (only an assessor can), and the total tax computed for 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 understand the rules? Although I have gone through it, I am not able to grasp it 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 advise.
Much Appreciated
From India, New Delhi
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Automated TDS with Form-16 for C.G. Financial Year 2011-2012.xls
Circular Dated 28-10-2016 for settlement of PF Death Case Claims within 7 days.pdf