More than one employment in a year

Hi

Suppose I woked in two companies in a year and earned salaries and hence got two Frm 16s. Who is responsible for paying tax to the Income tax department if at the end of year it is found seeing the two Fom 16s from the employers that still some amount of tax should be paid to the government? Salary is Tax deducted at source and so it should not be the individual's responsibility but the responsibility of the employer. Is not it? Is it that it is the responsibility of the last employer if employer is responsible? Please resolve the issue and abpve queres according to the laws of income tax department.

Thanks

The current employer is liable to dispose off your tax liability as at the end of the year.

The previous employer had liability towards the period for which you were employed with him, after cessation of which, the current employer will assume the responsibility of the same. 

Current employer will have to deduct tax from the salary for the amount short deduction in previous months. If the employer does not deduct tax, the assessee cannot assume themselves to be free. They will have to pay self assessment tax at the time of filing of return.

Ahshay Jain

What do you mean by assessee? Do you want to mean the individual who is paying tax for his salaries is the assessee?

What is self assessment tax?

To me, an employer is responsible for TDS of salaries. So in this case the individual cannot be fined/blamed rather the employer should be blamed/fined if during filing return by the individual, the individual has not taken care of the amount that the Income tax department should get for the earning of salary by the individual.

I am not a CA.

Thanks

Assessee means the person who have to pay tax. Self assessment tax is the tax the assessee pays when he files return of income to income tax department . That is why its known as self assessment tax i.e. tax assessed by the person himself.

Sir TDS is the responsibility of employer, but if employer does not deduct it you have to pay it when you file your return of income. If you pay it then there would not be any proceedings of IT department.

Akshay

Who between employer and assessee will be fined by IT department in the above case  if the assessee  do not pay it during filing return? Should not it be the employer who should be fined by IT department as this is TDS for salary and hence responsibility of the employer?

Thanks

First of all since it is the income of assessee, so assessee have to pay tax. If assessee does not pay tax then income tax department may initiate penalty proceedings. Secondly the Expenses of employer will be disallowed since TDS is not deducted correctly, for the amount for which tds is not deducted.

Hi,

The Income tax has prescribed 'Form 12B' for such cases. Here, the individual (like urself) needs to detail his employment related income and corresponding TDS from earlier/ previous/ all other employers, to his new employer. The new employer, based on this declaration (in Form 12B) estimated the total annual salary income and TDS for the individual and then estimated the balance/ remaining TDS (after considering the TDS already deducted).

By this method, the individual (like urself) will not have any additional tax liability for his salary income for the year and also his employer will not be at any fault.

Cheers