I am employed with a Indian consulting firm on deputation in UAE for a year. I am currently serving my notice period of 3 months. I get my compensation in three components: Taxable - (1) Fixed + (2) Performance Incentive Tax exempt - (3) Fixed monthly reimbursement (on bills) I am sick of their unethical (not sure about illegal) practices, however, I am a bit concerned about their leverage over me. 1. My salary is credited in INR in an Indian bank account because the company does not have a Dubai registered entity. Am i liable to pay my income tax in India even after 182 days? 2. My fixed salary does not have a PF component. Can an employer (with more than 12 employers) choose not to pay EPF? I have not had a correspondence with them regarding this. 3. My payslip mentions TDS being deducted. However, it does not reflect in my latest Form 26AS. (a) what is the norm for companies to deposit this? (b) what is my tax liability in case they don't deposit this amount at the end of the year? (c) in case of non-payment of TDS, do i have a breach of contract? 4. They have withheld my fixed salary component for the past month as collateral in case i run away without serving my notice period. This has made survival very difficult here. Do i have a legal case?
Yes you are liable to pay Income Tax in India.
Yes. You can check with them or on site for more details.
If TDS is deducted then the company needs to file TDS Returns mentioning your PAN. Then only TDS will be reflected in Form 26AS. If not then the company either is not filing TDS or not paying the amount to Income Tax. You can write a letter to them.
Dear Sir,
Based on the information provided by you, we have tried to summarise your case and provide you the following help:
1. Yes, you will be liable to tax in India as income is credited/ received in India.
2. Yes, it is upto the employer to deduct/ not deduct PF for employees drawing Salary more than 15000/-. So your employer may choose not to deduct PF.
3. Your employer may not have filed his TDS returns, please confirm with them about the same and ask them to provide you a TDS Certificate.
4. Not an expert to provide you a remedy on a legal front. Sorry !!!
Trust this clarifies your query.
Feel free to call back/ get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP.
Dear Sir,
Please find our response below:
1. Yes, you will be liable to pay tax in India as income is received in India.
2. Yes, your employer can choose not to deduct PF if your basic salary is more than INR 15000 P.a.
3. Please check with your employer, Otherwise write a letter to the Assessing officer of your Comapny. He will do the needful.
4. This is a general practice. Many companies do this. But please check with legal person about the legal case, I am not the right person to comment on it.
Please feel free to call/revert in case of any doubts.
Thanks and Regards,
CA Abhishek Dugar
CA, CS, B.Com
