Pune: The Income Tax Department has imposed penalties ranging from ₹5,000 to over ₹1.25 lakh on thousands of employees of the Pune Municipal Corporation (PMC) due to non-compliance with tax regulations. As a result, many employees are facing significant financial burdens, with some at risk of not receiving their salaries for two months.
The total amount to be recovered is estimated to be ₹40-50 crore, leading to strong opposition from employee unions, who have blamed the Accounts & Finance Department and private tax consultants for the issue.
Following the 7th Pay Commission, Class IV employees became liable for income tax, but many were unaware of their obligations. They were also asked to link their Aadhaar with their PAN card, but several failed to complete the process.
During an inspection, the Income Tax Department found that a large number of PMC employees had not complied with tax regulations, resulting in hefty penalties. The deductions will now be made in two installments, which means many employees will not receive their full salaries for the next two months.
As per regulations, department heads and bill clerks are responsible for ensuring accurate salary processing and tax deductions. The PMC’s Accounts & Finance Department has issued a circular clarifying that it is not accountable for the issue. Instead, the department stated that the responsibility lies with the respective department heads and bill clerks, who were already notified about the tax deductions.
In addition, PMC officials clarified that Sheetal Lohade was not assigned any TDS-related responsibilities, contradicting earlier statements that employees should contact Lohade for tax-related queries.
The PMC Employees’ Union has expressed strong dissatisfaction with the clarification issued by the Accounts & Finance Department. Bajrang Pokharkar, President of the PMC Employees’ Union, stated: "Previously, the municipal corporation had directed us in writing to contact Lohade regarding TDS-related issues. Now, they are denying any involvement, which is a clear attempt to shift responsibility. We will take this matter up with the Municipal Commissioner."
