New Delhi: Air India, the country’s state-run airline, which is under debt burden, is continuously defaulting on statutory payments like its Employee Provident Fund (EPF) and TDS. In a media report quoting the people associated with this matter, it has come to light. The default in payments came to light after government working on plan how best to sell the state-owned national carrier, having failed to offload a majority stake two years ago.
However, the airline has also denied any arrears regarding TDS payment. No explanation has been received yet about the payment. According to report, Air India has written that the company has paid the TDS dues.
The government officials said that Air India has not paid TDS and PF since January this year. The total outstanding TDS till the end of March is around 26 crores. Similarly, PF payment is also in crores of rupees. A spokesperson for this state-run airline declined to provide any information on the matter.
Will it affect employees?
The non-payment of PF or TDS will affect employees as this saved for the retirement. Usually, PF arrears are given to employees within 60 days of retirement.
In July itself, the Ministry of Civil Aviation had made it clear that no funding would be given to Air India. Since then, the financial condition of the company has become worse. This is the reason that the company has now reached the position of defaulting payment.