Income tax on salary

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Ankur (Querist)
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30 September 2013 HI,
Myself Ankur Garg n i m working in a event management company and my query is that if a person joins the company in october on a salary 50000 p.m., in our company his taxable income is 180000 appx. (after deduction HRA and 80c deduction), so should we ask his previous employer income also and deduct tax accordingly or we dont need to deduct any tax as his taxable income is less in our company..kindly advise

Nikhil Kaushik

Nikhil Kaushik (Expert)
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30 September 2013 Dear Ankur,

it is advisable that you check the information about income earned by the employeee at his previous job and also the tax deducted thereon. However, if such information is not provided, you are within your rights to not to deduct TDS.

@VaibhavJ

@VaibhavJ (Expert)
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30 September 2013 Hi,

Yes, you need to collect a declaration from employee mentioning Income from previous employment & also form 12 BA if TDS & PF is deducted by previous employer

OR

Declaration stating NIL Income.

While deducting TDS yo have to consider Gross Salary, Conveyance & HRA Exemption, PF & IT deduction from employees salary.

Thanks!!

@VaibhavJ

@VaibhavJ (Expert)
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30 September 2013 As mentioned by Nikhil, if employee fails to declare previous Income you are not required to deduct any TDS.

However this may lend up higher salary employee paying short TDS & they might receive notice from ITO since all Income paid is reported through ETDS return.

Thanks

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