TDS on Salary

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Girish (Querist)
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23 December 2009 One of our executive has joined our organisationinthe month of December 2009, his income is taxable, pls advise me how to consider his previous employer's income, as his previous employer informs that TDS certificate will be issued in April 2010. Pls advise how to compute his tax liability for the period Dec 2009 till March 2009, i have to consider his previous employer salary and compute, and also pls advise in that case how i have to file TDS returns.

Regards

Girish Mani

Prasad R

Prasad R (Expert)
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23 December 2009 The tax has to be computed for the year as a whole and not for the period Dec 2009 to Mar 2010.

First arrive at the aggregate Total Income of the employee for the period Apr 09 to Mar 10 which should include the income the employee got from his prev concern from Apr 09 till he was in service wid his ole employer and will also include income from Dec 09 to Mar 10 which he will receive from his new employer. Calculate Tax on a aggregate total income from both the employers as per the IT Act providing the deuctions and all the employee is eligible for. The tax that u'll arrive at is the Tax for the FY Apr 09 - Mar 10. After arriving at the total tax check from the employee how much TDS has been deducted from the previous employer from the employee. The TDS that has now to be deducted by you will be the difference between Tax to be paid for Apr 09-Mar 10 LESS TDS already deducted from the previous employee. You can arrive at the TDS to be deducted from you for the period Dec 09 To Mar 10. U can divide the TDS to be deducted from DEc 09 to Mar 10 into four TDS deductions to be deducted every month staring from Dec 09 to Mar 10.

Regards
Prasad R

Manikanta Raju CA,CWA,(CS)

Manikanta Raju CA,CWA,(CS) (Expert)
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23 December 2009 Hi,
You have take details of salary from the employee in Form .No: 12BA.
And a declaration from him that all the information furnished by him is true and correct

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