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Tds on salary

Sindhu Johnson (Accounts) (98 Points)

04 February 2013

Hi,

One of the employee joined in the organisation Last month and he has drawn Rs.3,60,000 from previous organisation (He didnt pay Tax on it ) and Rs.4,20,000 from the current organisation for the FY 2012-13. Should current organisation deduct the TDS. Please explain the reasons.

Regards

ISmail V

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9 Replies

anand (BUSINESS) (136 Points)
Replied 04 February 2013

i think u need to deduct tds on Rs 4.20 lakhs.

as Rs 3.6 was paid by previous employer.

Sindhu Johnson (Accounts) (98 Points)
Replied 04 February 2013

On 4.20 any Deduction is there ,Please Tell me Scale of duduction

Regards

Ismail V

Ganeshbabu K (Audit and Tax Advisory) (48559 Points)
Replied 04 February 2013

up to 2lakh no deduction

2lakh to 5lakh 10%

however employee savings should take into consideration in caluculating taxable salary

Vinit Kumar Sharma (Practice) (25 Points)
Replied 04 February 2013

You should deduct TDS on total salary income of the employee including salary paid by earlier employer i.e. 3.60+4.20= 7.80.

As per section 192(2) of income tac act, Tax sould be deducted by any employer to whom Details under Form 12B have been submitted by the employee. After receiving the form 12B from employee, employer is under obligation to deduct TDS on aggregate salary receipt by such employee.

Please revert in case of further clarification.

1 Like

CA A.Muthu Prabu (CA ) (83 Points)
Replied 04 February 2013

Ya, U need to club the previous empolyers pay with current empolyer salary and work out the tds deductability after considering 80C, 80D(Chapter VI A) Deductions and need to adjust the TDS already deducted by previous employer if any.

CA BARKHA MITTAL (B.COM, CA) (149 Points)
Replied 04 February 2013

TDS will be deducted on total salary including Salary from Previous Employer.

Mahavir Jain (Proprietor) (28 Points)
Replied 04 February 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).

piyush.a.k (-) (252 Points)
Replied 05 February 2013

completely agree with vinit kumar and mahavir jain...... on total amount of salary income of employee....

Vivek Kumar Scholar - The TRP (Tax Return Preparer) (37 Points)
Replied 06 February 2013

Well, It is upto employee that he declares his previous salary/taxable income to the next empolyer or not.

As he was paid 3.60 without any tds, so it seems he should have savings/losses atleast of 3.60-2.00(exemption)=1.60 this is why his previous employer did not cut any tax on it. anyway, If the employee furnishes his previous salary income in Form 12B to the new employer, with all his permissible deductions (80C to 80U asap) and losses from house property, then the new empolyer will calculate his tax on total income-total savings+losses from house property.

If the employee do not furnish his previous income details in Form 12B to the new employer, then the new employer need to calculate tax on 4.2 lacs only. in this case the employee will have to pay remaining calculated tax on his total income in a FY while filing the IT return.