**Gensol Group’s Tax Dilemma Leaves Employees in Financial Limbo**
Former employees of Gensol Group are facing a troubling situation as the company failed to deposit the tax deducted from their salaries for over a year. According to four former executives familiar with the matter, the group deducted tax at source (TDS) from employee salaries but did not remit these amounts to the tax authorities. This has left approximately 2,200 former employees potentially liable to pay these taxes again to the Income Tax department, as Indian law holds employees responsible for tax payments even when the employer defaults.
The group has not disbursed any salaries since March 2025, as reported by the former executives, who requested anonymity due to the sensitive nature of the situation. Gensol Engineering and BluSmart Mobility, both part of the Gensol Group, are currently undergoing corporate insolvency proceedings under the Insolvency and Bankruptcy Code, 2016, amid allegations of financial misconduct by the promoters.
One former executive, who left the company months before its collapse, expressed concern, stating, “They have not paid TDS since April 2024. I haven’t filed my tax return yet. I don’t know what to do.” This individual also noted that employees have not received their Form 16 for the previous fiscal year, complicating their ability to file tax returns as the September 15 deadline approaches. Form 16 is a crucial document that certifies TDS deductions and is necessary for tax return filings.
Another former executive, knowledgeable about the company’s HR practices, revealed that Gensol typically made TDS payments in lump sums at the end of the fiscal year rather than on a monthly basis. “They would always pay TDS late with penalties. Anmol (promoter Anmol Singh Jaggi) indicated that this was the company’s standard practice,” the executive stated. “In a meeting with CXOs in March, he promised to pay TDS by April 15, but that never happened.” This executive also mentioned the lack of an employee dashboard, with payroll being managed manually.
Queries directed to promoters Anmol Singh Jaggi and Puneet Singh Jaggi went unanswered as of the latest update. Meanwhile, Keshav Khaneja, the interim resolution professional for Gensol Engineering, indicated that he lacks access to employee salary or TDS data, as most staff have departed. He is currently working to gather information regarding outstanding employee dues.
Legal experts highlight that under the Income Tax Act, 1961, the responsibility for TDS payment lies with the employee, even if the employer fails to deposit it. This legal stance persists despite rulings from the Delhi, Karnataka, and Gujarat High Courts that have stated employees should not be held liable in such cases.
**FAQ**
**Q: What should former Gensol employees do about their tax liabilities?**
A: Former employees should consult a tax professional to understand their obligations and explore options for addressing any potential tax liabilities resulting from the company’s failure to deposit TDS.
