CA Prashant Gupta
Quick Summary
1. Relevant Sections of the Income-tax Act, 1961 Section 192(1): "Any person responsible for paying any income chargeable under the head 'Salaries' shall, at the time of payment, deduct income-tax on the estimated income of the assessee under the head 'Salaries' for that financial year." Sectio
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FAQ :
Section 192(1) states that any person responsible for paying salary income must deduct income tax at the time of payment, based on the estimated salary for the financial year.
TDS consolidation is mandatory for Central and State Government employees who are transferred from one office to another. The new drawing and disbursing officer (DDO) must consider salary and TDS details from the previous office.
No, for private sector employees changing employment, TDS consolidation is optional. It depends on the employee furnishing details of their salary and TDS from previous employers to the new employer using Form 12B.
Form 12B is used by employees to furnish particulars of their salary income and TDS from other employers to the current employer, as required under Rule 26A for consolidation purposes.
Form 16 is a certificate of Tax Deducted at Source on salary income. Part A is generated from TRACES, and Part B, containing salary details and tax computation, is prepared by the employer and issued annually by 15th June.
The last DDO must take into account the cumulative salary and TDS details from the former DDO, deduct any remaining TDS if necessary, and issue a single consolidated Part B of Form 16 for the entire financial year.
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