Pune: The Pune Municipal Corporation (PMC) has started recovering fines from employees who failed to link their PAN and Aadhaar with TDS deductions. This has led to significant unrest among municipal employees, as the total recovery amount is estimated to be between ₹40 to ₹50 crore.
The PMC Employees' Union has urged the administration to halt the fine collection and ensure that salaries are not withheld. They have blamed the municipal accounts and finance department and external consultants for the situation.
After the 7th Pay Commission was implemented, lower-grade employees in the PMC became liable to pay income tax for the first time. However, many of them were not informed about their tax obligations. Employees were also required to link their Aadhaar and PAN, but many did not complete the process.
As a result, during a recent Income Tax Department audit, thousands of PMC employees were found non-compliant. The tax department has now ordered PMC to recover the dues from these employees.
The fines range from a few thousand rupees to ₹1.5 lakh per employee. Since the amount is being collected in two installments, some employees may not receive their salaries for two months.
The PMC Employees' Union, led by President Bajrang Pokharkar and Vice President Vishal Thombre, met Additional Commissioner Prithviraj B.P. to discuss the issue.
Bajrang Pokharkar, PMC Employees’ Union President, stated: "The outstanding amount dates back to 2014. For years, no instructions were given for tax recovery. If employees had been informed earlier, they could have paid their taxes in installments and even claimed refunds. Instead, PMC has blocked their salaries and is forcing them to pay heavy fines.
The financial consultant and accounts & finance department are responsible for this situation, which has cost employees nearly ₹40-50 crore."
Additional Commissioner Prithviraj B.P. assured the union that the issue would be investigated. "We have asked the finance department to not withhold the salaries of employees who are not directly involved in this issue," he said.
However, Chief Accounts Officer Ulka Kalaskar clarified that the fine collection was being conducted by the Income Tax Department and not PMC's internal administration.
