Hi,
I was working as a manager in a corporate office in Delhi. As per the appointment letter, the notice period is 2 months. I have resigned and did not serve the notice period. The company sent me a demand notice to pay the notice period after 6 months. The company calculated the notice period based on the gross salary (Basic + HRA + Spl. Allowance) and adjusted earned leave based on the Basic salary only. Now, the company is not clearing PF withdrawal form, Form 16, etc.
Please advise on the following:
1. What is the legality of the notice period for officers in the corporate sector?
2. Is it permissible for the notice period and leave encashment to be calculated on different bases that only benefit the employer?
3. Can I withdraw my PF without attesting from the company and how?
4. How can I file an income tax return if I do not have Form 16?
Thanks & Regards,
Vineet Gupta
From United Arab Emirates, Abu Dhabi
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I was working as a manager in a corporate office in Delhi. As per the appointment letter, the notice period is 2 months. I have resigned and did not serve the notice period. The company sent me a demand notice to pay the notice period after 6 months. The company calculated the notice period based on the gross salary (Basic + HRA + Spl. Allowance) and adjusted earned leave based on the Basic salary only. Now, the company is not clearing PF withdrawal form, Form 16, etc.
Please advise on the following:
1. What is the legality of the notice period for officers in the corporate sector?
2. Is it permissible for the notice period and leave encashment to be calculated on different bases that only benefit the employer?
3. Can I withdraw my PF without attesting from the company and how?
4. How can I file an income tax return if I do not have Form 16?
Thanks & Regards,
Vineet Gupta
From United Arab Emirates, Abu Dhabi
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Dear Vineet,
As per the terms of appointment, you are legally supposed to serve your notice period. If not, you are supposed to pay for the same. If you do not pay, the company has every right to hold your papers back, and for that, you cannot hold the company liable. Different companies have different policies for notice pay as well as leave encashment. So, it is perfectly okay if your notice pay and leave encashment are calculated in the above manner.
You can withdraw PF without attestation from your company by attesting your signature by your concerned bank in both Form 19 and 10C and submitting your forms in the PF office yourself. The only problem will be that you won't have the contribution card (Form 3A), and for that, the PF office will ask for the same from your company. In that case, the company has every right to hold the same, and that could lead to some delay. However, legally PF money cannot be held back by the company for a very long time.
The company has every right to hold back your Form-16. However, as far as the remedy is concerned, I suggest you consult a tax consultant.
Regards
From India, New Delhi
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10As per the terms of appointment, you are legally supposed to serve your notice period. If not, you are supposed to pay for the same. If you do not pay, the company has every right to hold your papers back, and for that, you cannot hold the company liable. Different companies have different policies for notice pay as well as leave encashment. So, it is perfectly okay if your notice pay and leave encashment are calculated in the above manner.
You can withdraw PF without attestation from your company by attesting your signature by your concerned bank in both Form 19 and 10C and submitting your forms in the PF office yourself. The only problem will be that you won't have the contribution card (Form 3A), and for that, the PF office will ask for the same from your company. In that case, the company has every right to hold the same, and that could lead to some delay. However, legally PF money cannot be held back by the company for a very long time.
The company has every right to hold back your Form-16. However, as far as the remedy is concerned, I suggest you consult a tax consultant.
Regards
From India, New Delhi
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Dear Mr. Awvik,
Mr. Awvik has replied nicely. You can withdraw your PF without any problem. You fill up withdrawal forms 19 and 10C and deposit directly to the PF office along with a letter stating that the employer is harassing and not attesting the PF withdrawal form.
As per Section 72(5) (d) of the PF Act, the PF department will send your form to the employer, and the employer is bound to attest and return the same to the PF office within five days of receiving it. For form 16, you can consult any tax consultant. The rest of the points were cleared up by Mr. Awvik.
Thank you,
JS Malik
From India, Delhi
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Mr. Awvik has replied nicely. You can withdraw your PF without any problem. You fill up withdrawal forms 19 and 10C and deposit directly to the PF office along with a letter stating that the employer is harassing and not attesting the PF withdrawal form.
As per Section 72(5) (d) of the PF Act, the PF department will send your form to the employer, and the employer is bound to attest and return the same to the PF office within five days of receiving it. For form 16, you can consult any tax consultant. The rest of the points were cleared up by Mr. Awvik.
Thank you,
JS Malik
From India, Delhi
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Dear Vineet,
Regarding PF, you can directly go to the PF office and submit the forms 10C and 19. Alternatively, if you have joined another company, your current employer can issue form 13 and attest the same. This way, your PF amount will be carried forward to your new account.
In terms of IT filing, if you have payslips from the company, tax consultants can derive the income details and compute your income accurately. Therefore, there is no need to worry about Form 16.
From India, Bangalore
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Regarding PF, you can directly go to the PF office and submit the forms 10C and 19. Alternatively, if you have joined another company, your current employer can issue form 13 and attest the same. This way, your PF amount will be carried forward to your new account.
In terms of IT filing, if you have payslips from the company, tax consultants can derive the income details and compute your income accurately. Therefore, there is no need to worry about Form 16.
From India, Bangalore
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Tax on premature PF withdrawal.pdf
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