tax deduction on salary

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This query is : Resolved

darshan (Querist)

21 June 2010 we have two companies and other company is incorporated in july, hence some of the staff were shifted to new company, my query is what would be the tds deduction effect,both the compny has not yet paid tds on salary,
1) shall it be dedcted from old company for first quarter
2) wholly deduct tds from new company
or any other way

Shudhanshu Agrawal

Shudhanshu Agrawal (Expert)

21 June 2010 If salary is related to the company 1 then TDS should be deducted by company 1 and if salary is related to the company 2 then TDS should be deducted by comapny 2. As in the above case new company was incorporated in july then TDS can be deducted after july only.

darshan

darshan (Querist)

30 June 2010 i have to issue two tds certificate,
cant first quarter go with out paying any tds
,
can i deduct all tds from new company for the employee since the total income from first company is below taxable

Shudhanshu Agrawal

Shudhanshu Agrawal (Expert)

30 June 2010 If 3 months salary is not taxable then there is no need of TDS deduction and consider these 3 months income as previous employer salary in the new company and deduct TDS accordingly.

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