SpiceJet deposits TDS of employees for financial year 2021-22, PF to be credited

Shares of SpiceJet Ltd surged about 9% to ₹42 apiece on the BSE in Thursday’s opening deals after a report said that the Indian budget airline carrier is expected to receive an additional ₹1,000 crore loan under the government’s modified Emergency Credit Line Guarantee Scheme (ECLGS) as the airline is in need of funds to sustain heavy cost burden and pay pending dues.

“We are happy to share that TDS for FY2021-22 of all employees has been deposited by SpiceJet. It will take a few days to reflect in your tax credit statement,” SpiceJet’s email to employees read.

“The Form-16 will hence be made available by next fortnight,” as per company mail to employees.

The airline company also stated that significant portion of provident fund contributions of all employees is also being credited. “Significant portion of PF contribution of all employees is also being credited,” SpiceJet said.

In September, the loss-making airline hiked salaries of its captains and senior first officers by around 20 per cent with effect from October.

The government’s Emergency Credit Line Guarantee Scheme (ECLGS) is providing some sort of financial relief for the carrier.

On Thursday, an airline source said it was expected to receive an additional ₹1,000 crore as part of the modified ECLGS.

SpiceJet had posted a net loss of ₹789 crore for the June quarter as well as ₹458 crore for the quarter ended March 2022.

The carrier, whose flights have been restricted to 50 per cent till 29 October by aviation regulator Directorate General of Civil Aviation (DGCA), last month sent 80 of its cockpit crew on leave without pay for three months.

At that time, the airline said the measure, “which is in line with SpiceJet’s policy of not retrenching any employee which the airline steadfastly followed even during the peak of the Covid pandemic, will help rationalise the pilot strength vis- -vis the aircraft fleet”.

The airline also took note of resignation of Sanjeev Taneja, Chief Financial Officer of the Company, with effect from 31 August 2022.