Mumbai: Several Kingfisher Airline employees have in recent weeks received income tax (I-T) demand notices. For some employees, these notices run into a few lakhs as they cover a three-year period beginning from the fiscal 2009-10. While tax was deducted against their salaries, it was not deposited by the company. Now the I-T department is once again asking the employees to pay such taxes, together with penal interest for the delay.
It is learnt that after some employees of Kingfisher Airlines staged protests and brought their predicament to the notice of the finance ministry, the Central Board of Direct Taxes (CBDT) issued a memorandum. If income tax has been deducted at source against salary but the employer has not deposited the same, demand notices cannot be served on the employee for recovery of I-T, the CBDT reiterated in its memorandum dated March 11.
However, a few employees confirmed that the ground reality continues to be different and demand notices keep rolling out. A Bengaluru-based I-T official admits this is the case because of the computerized system at the tax department, which automatically issues such notices on seeing that the tax deducted has not been deposited (or credited against the employee's I-T record).
30/03/16 Times of India
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It is learnt that after some employees of Kingfisher Airlines staged protests and brought their predicament to the notice of the finance ministry, the Central Board of Direct Taxes (CBDT) issued a memorandum. If income tax has been deducted at source against salary but the employer has not deposited the same, demand notices cannot be served on the employee for recovery of I-T, the CBDT reiterated in its memorandum dated March 11.
However, a few employees confirmed that the ground reality continues to be different and demand notices keep rolling out. A Bengaluru-based I-T official admits this is the case because of the computerized system at the tax department, which automatically issues such notices on seeing that the tax deducted has not been deposited (or credited against the employee's I-T record).
30/03/16 Times of India
