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    Air India defaults on TDS, EPF payments as Centre mulls on how to sell the carrier

    Synopsis

    Government officials told ET otherwise. “Air India has not made payments against TDS and PF since January this year. TDS dues is in the range of ₹26 crore till March-end and the PF dues runs into several crores,” said one of them.

    New Delhi: Cash-strapped Air India has been defaulting on statutory dues such as tax deducted at source (TDS) and Employees’ Provident Fund (PF) payments, said people with knowledge of the matter. This comes as the government considers how best to sell the state-owned national carrier, having failed to offload a majority stake two years ago.

    The airline denied it was behind on TDS but didn’t respond to queries on PF.

    “Air India has already deposited the TDS. Distribution of Form 16 is also under process,” the airline said in an email to ET.

    19 sep


    Government officials told ET otherwise. “Air India has not made payments against TDS and PF since January this year. TDS dues is in the range of ₹26 crore till March-end and the PF dues runs into several crores,” said one of them.

    An airline spokesperson said that “they would not like to make any further comment on the issue,” despite reminders about the PF matter.

    Non-payment of PF and TDS impacts current employees as well as those who have retired and are waiting for their benefits. Air India, in its response, said former employees get PF arrears generally up to 60 days after leaving.

    ET reported July 12 that the aviation ministry has refused Air India any more equity support to fund its losses. This has aggravated its poor financial situation, possibly forcing it to fall behind on payments. ET reported on August 6 that Boeing had suspended replacement of faulty parts in Air India’s Dreamliner fleet due to nonpayment of dues.
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    24 Comments on this Story

    Shloka Bhatt36 days ago
    The best option is to close this airline. Government shouldn't run companies in service industry. Service industry needs flexibility and government companies don't have that flexibility and professionalism. Not just true in India but across the world and that's why from British Airways to Air France to Qantas all big airlines were privatised 20 years back.
    Jagdip Vaishnav37 days ago
    This was well expected
    Kochar Bipin37 days ago
    It is shocking to read that Air India has now started defaulting on statutory dues - the Air India management must immediately cut all expenses snd renegotiate all contracts to ensure that the Airline is at least at break even level.
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