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Tds from sqalary

Deepak Tapse (Accounts Manager - Taxation) (1771 Points)

19 January 2013

If a Director receing salary from two different company, then how to calculate TDS form Salary considering both company.

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Akanksha Jain (Article) (690 Points)
Replied 19 January 2013

1. Add the salary received from both the company (eg. Rs. 200,000 and Rs 4,00,000)

2. Calculate the total tax liability.. (Rs. 51,500 in above eg)

3. Proportionately divide the tax libility as per the amount of salary.. (Rs.17,167 and Rs. 34,333)

4. Compute TDS monthly for both the companies.. (Rs. 1,430 and Rs. 2,861)

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Manikanth (Chartered Accountant) (342 Points)
Replied 19 January 2013

I think , Salary received from the both co.'s would be aggregated nd apply the slab rates as per the IT provisions for calculating TDS nd then divide proportionatly as per the salaries

Hitesh Khanna (Accounting & Finance Taxation Company Law Audit ) (839 Points)
Replied 19 January 2013

Sub-Section 2 of Section 192 provides that where a person is simultaneously employed with more than one employer, he may furnish the particulars of salary payments and TDS to the employer of his choice. Similarly, on change of employment the particulars of salary and TDS of earlier employment may be furnished to the subsequent employer. These particulars are to be furnished in Form 12 B in accordance with Rule 26A of the I.T.Rules. The employer on receipt of such information is required to take into account the particulars of salary and TDS and then deduct tax at source considering the aggregate salary from all sources.

Sanket (!..Live to Give..!) (16427 Points)
Replied 19 January 2013

Section 192(2) deals with situations where an individual is working under more than one employer or has changed from one employer to another. It provides for deduction of tax at source by such employer (as the taxpayer may choose) from the aggregate salary of the employee who is or has been in receipt of salary from more than one employer. The employee is now required to furnish to the present/chosen employer details of the income under the head “Salaries” due or received from the former/other employer and also tax deducted at source therefrom, in writing and duly verified by him and by the former/other employer.

The present/ chosen employer will be required to deduct tax at source on the aggregate amount of salary (including salary received from the former or other employer).