TDS

This query is : Resolved

Shilpa padia (Querist)
Follow

02 January 2017 Sir,where for 6 months an employee is employed under one employer, and for another half year he employed under another employer than what is the provision of TDS on salaries.

ND (Expert)
Follow

02 January 2017 The employee has to disclose his salary from previous employer to the current employer. The current employer will calculate the salary from both the employers and then will deduct tax at source. In case the salary from previous employer is not disclosed then employee will have to pay short fall of tax on both the salaries in his income tax return.

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
Follow

03 January 2017 Employer should take declarations in which he has to take Confirmation of any other income, Employee should disclose income from previous employment and Tds if any based on that current employer will work income consider saving and TDS Arrive tax liability.

Shilpa padia

Shilpa padia (Querist)
Follow

06 January 2017 Sir but when he resigns the past employer he has already got his salary from him,then why current employer deduct TDS taking into consideration past employer salaries also.

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
Follow

27 July 2025 Great question! Here’s why the **current employer deducts TDS considering the salary from the previous employer** even though the employee already got paid from the past employer:

* **TDS on salary is calculated on the employee’s total income for the financial year.**
* The **previous employer deducts TDS based only on the salary paid by them** during their employment period.
* The **current employer needs to consider the total income earned during the entire year** (including salary from previous employer) to calculate correct tax liability and deduct TDS accordingly.
* This helps avoid the employee **underpaying tax during the year**, as the previous employer’s TDS might have been insufficient considering the total annual income.
* If the employee does not disclose previous salary, **the current employer can only deduct tax on the current salary**, which may cause the employee to have to pay extra tax (shortfall) when filing the ITR.

In short: The current employer deducts TDS based on total income (including previous salary) to make sure the tax deducted reflects the correct tax liability for the whole year.

---

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