Debt-strapped SpiceJet has delayed salaries to over 45 per cent of its employees and missed the deadline for depositing tax deducted at source (TDS) on the salaries.
SpiceJet’s salary cycle is on the 30th of every month. According to multiple employees — from cabin crew and pilots to engineers and admin departments — they are yet to receive their salaries. “Salary is being credited in a graded format beginning July 30. Salaries of 55 per cent of employees have been credited. This has been the norm for the past many months,” a company spokesperson said, without denying that there has been a delay in salary payment.
Recently, GoFirst was also under the scanner over delayed salaries.
The employees also told BusinessLine that they were unable to pay their taxes because the company has not generated Form 16. Not only that, the company itself is yet to remit TDS on behalf of employees. The company said, “Tax for 95 per cent of the employees will be deposited in the next 2-3 days. For the rest, it will be done within August 2022. The company has already initiated the process.”
As per income tax laws, the last date for filing TDS returns for an employer is May 31, and Form 16 has to be issued latest by June 15, unless the date is extended by the government. If the employer delays the generation of Form 16 post the deadline, the company is charged a fee of ₹100 per day per employee till the date of the default.
SpiceJet has been facing an acute cash crunch. Ireland-based leasing company Awas Ireland Ltd has also requested the Indian aviation watchdog DGCA to deregister three aircraft it had leased to SpiceJet, over unpaid dues.