Reporting Non-Payment of Salary and Unfiled Taxes by Your Employer: A Comprehensive Guide

Encountering a situation where your employer fails to pay your salary and deducts TDS (Tax Deducted at Source) without filing the tax return can be distressing. However, it’s crucial to address the issue promptly and take the necessary steps to protect your rights as an employee. This comprehensive guide will walk you through the process of reporting such incidents in India, ensuring proper action is taken.

1. Understand Your Rights as an Employee: Before initiating any action, familiarize yourself with the labour laws and employment regulations in India. Key provisions include the Payment of Wages Act, 1936, and the Income Tax Act, 1961. Understanding your rights will empower you to navigate the reporting process more effectively.
2. Communication with Your Employer: Initiate a written communication with your employer regarding the non-payment of salary and the unfiled tax return. Clearly express your concerns and document all correspondence for future reference. Request an explanation for the discrepancies and seek resolution through direct communication.
3. Gather Evidence: Collect all relevant evidence to support your claim. This includes salary slips, bank statements, offer letters, employment contracts, TDS certificates (Form 16), and any other relevant documents that validate your employment and financial transactions with the company. These documents will serve as crucial evidence when reporting the issue.
4. Consult with Colleagues: Reach out to colleagues or other employees who may have faced similar issues within the organization. Discuss their experiences and gather information to strengthen your case. If feasible, consider reporting collectively to amplify your voice and increase the chances of a favourable resolution.
5. Seek Legal Advice: Consult with an employment lawyer or a legal professional specializing in labour laws in India. They will guide you through the legal intricacies, explain your rights, and suggest appropriate actions. They can help draft legal notices or represent you in legal proceedings if required.
6. File a Complaint with the Labor Authorities: In India, the labour department in your state or region is responsible for addressing labour-related grievances. File a formal complaint with the labour authorities, providing all relevant details and supporting documents. Include information such as your employer’s name, address, company registration details, your employment details, and evidence of salary non-payment and unfiled taxes.
7. Report to Tax Authorities: Notify the Income Tax Department about the unfiled tax return and the company’s failure to pay the appropriate taxes. Contact the local income tax office or visit their official website to find the necessary reporting channels. Provide details of your employer, including their PAN (Permanent Account Number) and TAN (Tax Deduction and Collection Account Number), along with supporting evidence.
8. Approach Labor Unions and Associations: Seek assistance from relevant labour unions and associations in your industry. They can provide support, guidance, and advocate on your behalf during the reporting process. They may have resources, legal experts, or collective bargaining power that can help in resolving the issue.
9. Maintain Confidentiality and Document Everything: Ensure that you maintain confidentiality throughout the reporting process to protect your own and others’ interests. Document all conversations, emails, meetings, and any other communication related to the issue. This will help in building a strong case and presenting a comprehensive record of your efforts if further legal actions are required.
10. Follow Up and Stay Persistent: Regularly follow up with the labour authorities and tax department regarding the progress of your complaint. Maintain open lines of communication and provide any additional information or documents they may request. Stay persistent and assertive in seeking a resolution to the issue.

 

Reporting salary non-payment and unfiled taxes by your employer is essential to protect your rights as an employee. By understanding your rights, gathering evidence, seeking legal advice, reporting the issue to labour authorities and tax departments, and seeking support from labour unions or associations, you increase the likelihood of a resolution. Remember, taking timely action is crucial to safeguard your financial well-being and uphold fair employment practices.

Important Links:

• https://samadhan.labour.gov.in/
• https://eportal.incometax.gov.in/iec/foservices/#/pre-login/tax-evasion-prelogin

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