Inappropriate TDS deducted by previous organisation

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This query is : Resolved

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If your previous employer deducted Tax Deducted at Source (TDS) incorrectly, your new employer is responsible for deducting the appropriate TDS amount, taking into account the previous lapse. Fortunately, the previous company generally won't receive a notice from the IT department if the new company rectifies the deduction.

Mahesh Jadhav

Mahesh Jadhav (Querist)
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27 September 2023 Hello,

If inappropriate TDS is deducted by previous company, is new company's liablity to higher TDS for deduction of appropriate annual TDS deduction ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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28 September 2023 Yes, new company has to deduct TDS rightly considering the lapse of previous company.

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Mahesh Jadhav

Mahesh Jadhav (Querist)
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29 September 2023 One more thing, in this case will previous company get a notice from IT dept for deducting lower even after new company has deducted appropriate TDS ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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29 September 2023 No notice as second company made it right.

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