Taxability on income earned from past employer

Save Share

This query is : Resolved

RAHUL SHAH (Querist)
Follow

11 November 2013 Hi All,

Is it necessary to consider employees past employeement income for calculating his net taxable income for deductiong monthly tds?
My current practice is we are asking a declaration from the emloyee as below and considering his current income only.
(His previous employer has charged income tax on his past income properly and if any further tax liability arise for that i am solely responsible.)

so what is the proper way considering income tax rule?

Nikhil Kaushik

Nikhil Kaushik (Expert)
Follow

12 November 2013 it is a good practice to consider the salary from the earlier employer. Else, it normally results in short deduction of TDS, which you need to cover for by paying self-assessment tax or advance tax.

there is no rule making it compulsory. However, the employer shall be within his right to consider such income for computing tax liability

RAHUL SHAH

RAHUL SHAH (Querist)
Follow

12 November 2013 But What is the industry practice? Because employee newly joined out of which hardly 5% employees are able to submit their form-16 of previous employeement. Out practice is we show income of employee earned in our organization only in his form-16 and employee will calculate his correct income tax while filing his income tax return.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now