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Mint
an hour ago
- Mint
Gensol employees face threat of double tax liability
Mumbai: Gensol Group companies deducted tax from employee salaries before going belly-up, but didn't deposit the tax deducted at source (TDS) with authorities for a year, four former executives who are aware of the matter said. That leaves about 2,200 former employees of the group in a situation where they might have to pay the taxes again, this time to the Income Tax department, as Indian law holds the employee liable for paying tax even where the employer is at fault, despite multiple court orders to the contrary. The group companies have not paid any salaries since March 2025, the former executives said on the condition of anonymity as they did not want to be publicly associated with the beleaguered group. Gensol Engineering and BluSmart Mobility went bankrupt amidst charges of promoters siphoning crores of rupees and misleading investors, and are separately undergoing corporate insolvency under the Insolvency and Bankruptcy Code, 2016. 'They have not paid TDS since April 2024. I haven't filed my tax return yet. I don't know what to do," said one of the executives who quit months before the company went down. This executive added that employees have not received their Form 16 for the previous fiscal, which puts them in a spot over filing returns even as the 15 September deadline approaches. Form 16 is a certificate of TDS provided by the employer that helps employees reconcile tax deductions, and is an essential document for filing tax returns. A second former executive who is directly aware of the company's HR practices said that Gensol habitually deposited TDS lumpsum at the end of the year rather than making monthly deposits. 'They would always pay TDS late with penalties. Anmol (promoter Anmol Singh Jaggi) said that this was the company's usual practice," this person said. 'In a meeting with CXOs in March, he said he will pay TDS by 15 April. That never happened." The second executive added that there was no employee dashboard and 'the payrolls were made by hand". Queries sent to the promoters Anmol Singh Jaggi and Puneet Singh Jaggi on Monday remained unanswered as of press time Tuesday. Meanwhile, Keshav Khaneja, Gensol Engineering's interim resolution professional, said that he does not have access to employee salaries or TDS data as everyone has left the firm. He is trying to piece together the information on pending employee dues, he said. Law vs courts Legal experts say that under the Income Tax Act, 1961, the liability lies on the employee even if the employer fails to deposit TDS with the tax department. This is despite the Delhi, Karnataka and Gujarat High Courts ruling separately that the employee was not liable. The case brings flashbacks of the infamous bankruptcy of Kingfisher Airlines from over a decade ago when thousands of employees were left without pay and their TDS was similarly not deposited with the tax department. The employees subsequently received tax notices, prompting many to move court. Eventually, the Delhi, Karnataka and Gujarat High Courts separately ruled that employees were not liable and authorities must recover the dues from the airline. More recently, several thousand employees of beleaguered edtech platform Byju's also found themselves in a similar conundrum. The Bombay High Court provided relief last September with a ruling that employees were not liable for unpaid TDS when the employer is undergoing corporate insolvency. 'Unfortunately, this relief is flowing from judicial pronouncements and not from the statute itself," said Amit Singhania, founder of Areete Law Offices. 'Therefore, again the employees may have to knock the door of the Court, to get relief from tax demand arising from non-payment of TDS." The background The Gensol Group employed about 2,200 people across its various companies including flagship Gensol Engineering, ride-sharing platform BluSmart Mobility and several other unlisted subsidiaries including Gensol Electric Vehicles, Gensol EV Leasing, and Matrix Gas and Renewables. When the company went kaput overnight earlier this year, many jumped at the first offer that came their way, the former executives said, while most hung on to the hope of a resolution and the recovery of their unpaid dues. The Securities and Exchange Board of India (Sebi) filed its interim order against Gensol Engineering Ltd and its promoters on 15 April. The regulator accused the promoters of siphoning crores of rupees from the company for personal expenses, and said that there was a complete breakdown of internal controls and corporate governance norms at the Mumbai-listed company. 'The promoters were running a listed public company as if it were a proprietary firm. The Company's funds were routed to related parties and used for unconnected expenses, as if the Company's funds were promoters' piggybank," Sebi wrote in its interim order. The diverted funds would ultimately have to be written off from the company's books, resulting in losses to the investors, Sebi said. Sebi's final order in the case is still pending.
Time of India
3 hours ago
- Time of India
Telangana sees sharp rise in number of high-income taxpayers in last five years
1 2 3 4 Hyderabad: Be it the pandemic or layoffs across industries, nothing seems to have slowed the growth of employees in Telangana, as the number of individuals earning over Rs 25 lakh per annum increased by over 140% in the last five years, records show. While the total number of ITRs declaring a total income between Rs 25 lakh and Rs 50 lakh stood at 25,216 during the assessment year (AY) 2020-21, the figure shot up to 60,830 in AY 2024-25. In fact, the state saw a steady increase in the last five years when it comes to people earning over Rs 25 lakh per annum (LPA). "For me, the pandemic came as a boon. From hardly Rs 10 LPA, my package increased to over Rs 25 lakh as I switched jobs four times in five years," said Sai K, a software professional. You Can Also Check: Hyderabad AQI | Weather in Hyderabad | Bank Holidays in Hyderabad | Public Holidays in Hyderabad | Gold Rates Today in Hyderabad | Silver Rates Today in Hyderabad Giving a peek into the trend, Jitender Reddy, a senior service delivery manager at an IT firm, said that people earning between Rs 2 lakh and Rs 5 lakh and Rs 5 lakh and Rs 8 lakh benefited the most. "This comes as no surprise as many IT employees switched companies during the pandemic with at least a 30% hike. With year-on-year hikes afterwards, their package would easily cross the Rs 25 lakh mark," he added. A few pointed out that there are quite a few who moonlighted during Covid-19 as they were working remotely and added that they are continuing to file inflated returns to ensure that there is no mismatch in their income in the last few years. Along with IT professionals, people from other sectors such as pharma also received good hikes in the last few years. An increase in risk appetite post-pandemic, awareness about investment opportunities, and an increase in real estate prices, among others, are also attributed as other factors that contributed to the increase in the income of individuals. "Definitely, real estate would be a factor that contributed to the increase in income. Also, many are starting their own businesses as they are willing to take risks and are running successful businesses. This could be because of an increase in risk appetite and also an increase in the number of districts," said K Laxminarayana, an economics professor, adding that those in the health and education sectors have also started earning good money in the last few years. As per the data tabled in Lok Sabha, the increase was about 100% in the same category as the ITR filers in the said bracket increased from 4,03,363 in 2020 to 8,42,147 in 2025 across the country. Stay updated with the latest local news from your city on Times of India (TOI). Check upcoming bank holidays , public holidays , and current gold rates and silver prices in your area.
Mint
5 hours ago
- Mint
Income Tax: Top 10 things first time taxpayers must keep in mind while filing ITR
Income-tax returns: From what documents are required, to which forms is the one to fill, and what is the last date of filing — we look at the top 10 important things to remember for first time taxpayers filing their income tax returns (ITR). Notably, while the e-filing process has become quicker and easier over the years, the process can be daunting for for first-time filers. Salaried individuals overwhelmed by the process can use this simple checklist to ensure that they are properly prepared before filing ITR. Who must file ITR? Notably, all Indian residents are required to file their ITR for income tax purpose: If the aggregate of your income or salary exceeds the prescribed limits. If they hold assets in India or abroad; If they have investments in markets, shares, or ESOPs; If they have bank deposits exceeding ₹ 50 lakh combined; If they have savings or current account exceeding ₹ 1 crore total; If they have paid electricity bill over ₹ 1 lakh annually; or If they have travelled internationally with expenditure over ₹ 2 lakh; and If the value of their sales (irrespective of income) exceeds ₹ 60 lakh. What is total taxable income? Your total taxable income is calculated as the gross earnings from salary and other sources (bank fixed deposits and shares, etc.), minus any tax-saving deductions you may have made. Such deductions include investment in public provident fund (PPF), national pension scheme (NPS), insurance, or payments towards loans and rent. Your total taxable income is calculated as the gross earnings from salary and other sources (bank fixed deposits and shares, etc.), minus any tax-saving deductions you may have made. Such deductions include investment in public provident fund (PPF), national pension scheme (NPS), insurance, or payments towards loans and rent. Should I opt for old regime or new regime? The answer to the new vs. old tax regime debate depends completely on how much you earn and what deductable investments you can show. You can use online tax calculators to determine which option minimises your tax liability, or consult with a financial planner or your chartered accountant (CA), for the best course of action. What is the last date of filing ITR for FY24-25 (AY25-26)? The deadline for filing your ITR without incurring penalties for delayed returns this year is September 15, 2025. You can still file a delayed ITR till December 31, 2025, but this would cost you upwards of ₹ 1,000 to ₹ 10,000 depending on the duration of the delay and your taxable amount. The deadline for filing your ITR without incurring penalties for delayed returns this year is September 15, 2025. You can still file a delayed ITR till December 31, 2025, but this would cost you upwards of 1,000 to 10,000 depending on the duration of the delay and your taxable amount. What documents do I need to file ITR? Before filing your ITR keep the following documents ready as applicable: Form 16 (from current employer and former employer if you changed jobs mid-year), PAN Card, Aadhaar Card (PAN-Aadhaar must be linked), and investment proofs (including bank deposits, PPF deposits, etc.), home loan interest certificate, and insurance premium payment receipts. What is Form 16? This TDS certificate provided by your employer details your salary, deductions claimed, and exemptions availed, which are essential for filing your ITR. This TDS certificate provided by your employer details your salary, deductions claimed, and exemptions availed, which are essential for filing your ITR. What is review Form 26AS? This document summarises income on which TDS has been deducted, which is crucial for accurate tax filing. This document summarises income on which TDS has been deducted, which is crucial for accurate tax filing. What is Annual Information Statement (AIS)? Includes details like interest income, dividends, securities transactions, and foreign remittances, pre-filled in your ITR form for ease. What is e-verification? Is it mandatory? The Income-Tax (I-T) Department has noted that when filing your returns all assessees must complete the process by completing e-verification of their ITR filing. If not done within 30 days, it may result in your ITR refund getting delayed due to 'invalid' or 'incomplete' process. This can be done via the e-filing portal using Aadhaar OTP, net banking, or electronic verification code (EVC). The Income-Tax (I-T) Department has noted that when filing your returns all assessees must complete the process by completing e-verification of their ITR filing. If not done within 30 days, it may result in your ITR refund getting delayed due to 'invalid' or 'incomplete' process. This can be done via the e-filing portal using Aadhaar OTP, net banking, or electronic verification code (EVC). Which ITR form should you choose? Choose the form as per your eligibility mentioned below: Choose ITR-1 form: If you are an individual with income from salary, one house property, and other sources. Choose ITR-2 form: If you are an individual or Hindu Undivided Family (HUF) without business income. Choose ITR-3 form: If you are an individual or HUF with income from business or profession. Choose ITR-4 form: If you have presumptive income from business or profession.
