TDS on Salaries
This query is : Resolved
03 January 2011
one of our employee has joined from middle of the year,his salary for the 6 months is high and it taxable.Now my query is, is it compulsary to take form 12B and Form 16 from that employee? and what is the use of both forms to us?
03 January 2011
When you calculate his salary & taxes thereon, you have to add his taxable salary & TDS deducted by past employer (Pertaining to the current FY)
03 January 2011
Suppose... A worked with XYZ Ltd for Apr,10 to Sept,10. His taxable salary for 6 months were Rs. 240000/- & Taxes deducted thereon by XYZ Ltd for FY 2010-11, stands at 25000/-.
Now you will make an estimate for his next 6 months salary at your office , Then you will add the taxable salary from XYZ Ltd (for FY 2010-11). Now you have his complete annual estimate. Now you will calculate TDS on the whole amount & deduct Rs. 25000/- (TDS by XYZ Ltd) from that. Now, the balance Tax has to be deducted by you in next 6 months.
I hope its clear.
Now you will make an estimate for his next 6 months salary at your office , Then you will add the taxable salary from XYZ Ltd (for FY 2010-11). Now you have his complete annual estimate. Now you will calculate TDS on the whole amount & deduct Rs. 25000/- (TDS by XYZ Ltd) from that. Now, the balance Tax has to be deducted by you in next 6 months.
I hope its clear.
03 January 2011
thanks sir,and is it compulsory to collect both forms from him.Because that previous employer will not provide him Form 16 now then how i can know the previous salary and all exemptions,allowances received by him?
03 January 2011
You can even take self declaration from the employee, but on the safer side, if Form 16 or Form 12B is not available, you can have some tax sheet, duly approved by the past employer.
Though, even if you rely on the self declaration of the employee, you are legally correct.
Though, even if you rely on the self declaration of the employee, you are legally correct.
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