The financial crisis at SpiceJet is hurting employees dearly. The struggling to-survive airlines, which have delayed August salaries, are allegedly defaulting on depositing tax deducted at source (TDS) with authorities and allegedly not depositing PF in employee accounts.
It is yet to give employees Form 16 for fiscal 2021-22 due to which they are facing issues in filing tax returns. It is also reportedly defaulting on some statutory payments too, claim sources.
“There has been certain deferral on discharging of payments but no default on any statutory payments. The company has been actively paying dues and clearing the outstanding. SpiceJet has been discharging its current GST liabilities on a regular basis.
The company has been making payments as per mutually agreed payment plan and we have discharged our liabilities until February 2022. SpiceJet will receive more than INR 200 crore next week as part of the emergency credit line guarantee scheme (ECLGS) and the money will be used to clear other statutory dues and lessor payments.”Spokesperson, SpiceJet
The government amended the income tax law in Budget 2021 to ensure that employers deposited the employees’ EPF dues on time. According to the amended income tax law, if employers fail to make timely deposits of EPF dues, they will not be eligible for the deduction (employers may claim a tax deduction on the EPF contribution deposited as an expense).
An employer is required to deposit the EPF contribution within 15 days of the month ending for which salary has been paid, according to tax experts. The Employees’ Provident Fund Organization (EPFO) offers account holders the option to view their employer and personal contributions to their EPF online.
Employees with accounts at the trust, however, should ask their employer about the passbook to verify the regular deposits. Many such employers have been defaulting on PF contributions, however, employees can check if their employer is contributing the amount.
The cash-strapped airline’s troubles have been mounting in the past few months.
SpiceJet on August 31 declared losses of INR 1,725 crore for the full year of FY 22. The airline also reported a loss of INR 783.60 crore for April-June of FY 23 as compared with a loss of INR 729 crore in the year-ago period.
Meanwhile, SpiceJet employees alleged delay in the disbursal of salaries for the second straight month, with the budget airline saying the payments were being made in a “graded format”.
(With Inputs from The Times of India)