Previous income

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Querist : Anonymous

Querist : Anonymous (Querist)

22 December 2011 Sir,

1) Does a employee need to declare his previous income (same FY) to current employer?

2) Can this employee ask the current company to not to consider the income from previous company while deducting tds?

3) Can the employee himself submit tax for the income from previous company (since previous company did not deduct tds) and other sources, while the current company deducts tds regularly for remaining FY?

4) Can giving a written declaration to current company works if employee want to submit previous tax? Does it impact the current comapny anyhow?

Thanks in Advance

Guest

Guest (Expert)

22 December 2011 1. yes

2. no

3. yes

4. no

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anurag

anurag (Expert)
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22 December 2011 Giving details of previous employer salary income is optional and not mandatory.

Querist : Anonymous

Querist : Anonymous (Querist)

23 December 2011 Thanks both of you.

Confused between two different answers

While Neha Jain says: Employee should declare income from previous employer to current company. Neha, Can you please elaborate the answers. Also, My last question has two parts.

On the other hand Anurag says: Its not mandatory to declare previous income. Anurag would also like to add what if employee had given salary slips while joining the current employer, can still the employee fill tax of previous employer on its own.

Q 5)This majorly happens that nobody declares other income to current employer like bank interests etc, in this case current employer never bothers also. But they are pretty concerned with previous employer. Why this happens? If an employee can file tax returns for other incomes he can also file it for previous employer.

Kindly guide. Its urgent.

Thanks Again

Abhishek Ranjan Singh

Abhishek Ranjan Singh (Expert)
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25 December 2011 1. NO, It is not compulsory if TDS is not deduct on previous income than you can show it to current employer for Tax Deduction or you can Deposit the TAX yourself. it is totally depends upon you.

2. YES, Employee can ask current company to not consider previous income for TDS calculation if tds is already deduct or deposited by you or you want to deposit it yourself.

3.YES

4.No need to declaration. it is not impact any how to current company. Current company is liable to deduct TDS only on payment given by them.

5. Current company wants to know your previous salary that why they want to know your previous income

Any one is Liable only to deduct TDS on that payment which they are paying. Assess is Liable to declare his total income at the time of income tax return filing and pay the rest tax if Tax is payable (If tax is more than TDS if TDS is more he can claim refund for excess amount)

Abhishek Ranjan Singh
ARS Solutions
email2ars@gmail.com
+91 9022838615

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Querist : Anonymous

Querist : Anonymous (Querist)

27 December 2011 Thanks Abhishek.

Abhishek Ranjan Singh

Abhishek Ranjan Singh (Expert)
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27 December 2011 Welcome you can use Thank user option also.

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Anand Eriwal

Anand Eriwal (Expert)
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28 December 2011 Sub section 2 of Section 192 of the Income - Tax Act, 1961 provides that the employee may declare his previous employment income to the new employer.

The use of the words May indicates that it is optional for the employee to submit the previous employment income.

My suggestion would be to disclose the previous employment income. This would help the employee because if he did not disclose the previous income his tax deduction would be lower and then he would have to pay SA tax at the time of filing his return of income. Plus if the tax liability exceeds INR 5,000 he would be liable to pay even interest for deferement or non payment of advance tax also.

Hence, it would better if you disclose your previous employment income to the new employer to avoid last moment payment of taxes and increased interest burden under section 234B and section 234C of the IT Act.

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