LIVE GST Certification Course by CA Arun Chhajer. Register Now!!

TDS on sal from 2 employers

Abansal ( Manager) (121 Points)

29 May 2009

if an emploee worked for 6 months with 1 employer and he deducted TDS on slaray excess by 5000 Rs and in other company there is a tax liability for the other 6 months of Rs 7000 and they deduted TDS till date of 4000 Rs .

now the question is employee want that excess TDS deducted by previos employer should be adjusted in his present company and they shold not deduct Rs 3000 more on a/c of TDS.

what procedure shold the company follow in order to satisfy employee.

how can a company claim Rs 5000 excess deduted by the previos company of emploee in there TDS return ?

kindly advise

Reply
Follow
Share

15 Replies

Sorabh Gupta (Manager ( Taxation )) (877 Points)
Replied 29 May 2009

Aashima

As per section 192(2) , after submission of information by employee about his previous employer salary & TDS deduted by previous employer (FORM 12B) , then only new employer calculate employee taxable salary & TDS payable .....

If old employer deduct excess TDS employee sholud provide information (form 12B) to his new employer about his salary & TDS deducted then new deduct ionly the balance TDS after consiidering the old one.............

If any doubt then please let me know.............

R.Suresh (Sr. Executive) (394 Points)
Replied 29 May 2009

In my point of view

The present employer should not aviod to deduct the TDS from employee's of the company,

The above case the previos employer deducted more TDS from employee that is not affecting company side.

But if the present employer taken a TDS of pervious employer means they going for shortfall deduction in employee's TDS becuase in this case the present employer no chance to shown the prevoius employers TDS for his calculation of TDS.

So there is no chance to aviod the deducting TDS from the employee's for present employer. for Rs3000/-

Only way the employee get form 16 from both employer's and adding with 2 incomes from co calculate the actual tax and refund get from the IT dept.

This is the way.

If i am worng please clarify..

Sorabh Gupta (Manager ( Taxation )) (877 Points)
Replied 29 May 2009

Dear Suresh

Let me give one intrepretaion of law

"That when new employer consider the old employer salary for the total computation of a particular employeee so why he shouldn't consider the TDS amount deducted by old employer"

And there is no default on the part of new employer...................

R.Suresh (Sr. Executive) (394 Points)
Replied 29 May 2009

Dear Sorabh,

In ur first line also telling that the present employer not consider the previous employer salary then how will u take tds only as consideration?

I am not getting ur point .....and also i have a doubt in present employer

If the present employer considering previouse employer tds how they can show the details in the form or/and they showing shortfall in emplyees from 16?

and also the final quarter of ETDS the employees details colunm they going to show shortfall in TDS?

please clarify this...

Sorabh Gupta (Manager ( Taxation )) (877 Points)
Replied 29 May 2009

Dear Suresh

this is not what i m saying ...may be there was a communication GAP............

Let me clear............... If any joined a organisation during the year then he has to submit the previous employer salary details & TDS deducted by them (form 12B) & new employer should consider that salary & TDS amount otherwise present employer should consider his present salary as a whole year salary & deduct TDS accordingly..................

And in form 16 , present employer must show total salary paid to employee including previous employer salary & also show the total TDS deducted by you & previous employer.

Regarding the E-TDS return of last quarter , previous & present employer shows his salary details & TDS deducted by them seprately in their return and that particular employee gets credit on the basis of PAN no.

I think now you have no doubt.................. And suresh tell me one thing that if new employer did not consider the previous employer certificate ( Form 12b / Form 16) then what is the relevancy of such form dear ?????????????

R.Suresh (Sr. Executive) (394 Points)
Replied 29 May 2009

All are correct man but

Again i have doubt in the present employer side

In a form 16 the present employer were they can show the TDS deducted from previous employer and how he can match, becuase the payment of TDs is gone out by different TANS

How they includes and certified the total tds amounts in Form 16.

Sorabh Gupta (Manager ( Taxation )) (877 Points)
Replied 29 May 2009

Suresh

In form 16 there is a column . that previous employer salary ................

In that column you can show the salary & you can also show the TDS amount deducted by both employer by giving the details of challan wise TDS deposit details...........

akhil (student) (33 Points)
Replied 29 May 2009

i have seen such a case practically where employee was tfd from one unit of sahara to another. the present employer showed the total tds deducted( by him and previous employer) & in an annexure to form 16 they gave details regarding TAN no. & tds deducted etc. by previous employer. in his ITR form, schedule of tds on salary was filled up by showing tan no. & tds deducted separately for both employers.

Sourabh Sharma (CS CA (Final) M.com NCFM Derivative Capital Market Mutual Funds) (771 Points)
Replied 29 May 2009

sorabh u r right ....................

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 12B 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.