Two salary certificates in financial year 2011-2012
This query is : Resolved
25 July 2012
A person was working in company ABC and resigned from it. He withdrew all his dues, including gratuity, outstanding leave,etc. in December 2011. The form 16(Salary Certificate) clearly mentions that tax has been deducted at source.
In January,2012, this person joined another company XYZ for about two months. Naturally, the salary earned by him in these two months will be below taxable limit and hence no tax has been deducted at source.
This person has been advised that since the tax only on Salary Certificate of company ABC will find mention in the Income Tax Department records(26AS), he can ignore the Salary Certificate of company XYZ.
Furthermore, he has been advised that he may file IT Returns only on the basis of the Salary Certificate of company ABC.
The combined income of the two salary certificates(ABC plus XYZ)is attracting additional tax which he has been advised to ignore.
What are the repercussions of such an action and what is your advice?
In January,2012, this person joined another company XYZ for about two months. Naturally, the salary earned by him in these two months will be below taxable limit and hence no tax has been deducted at source.
This person has been advised that since the tax only on Salary Certificate of company ABC will find mention in the Income Tax Department records(26AS), he can ignore the Salary Certificate of company XYZ.
Furthermore, he has been advised that he may file IT Returns only on the basis of the Salary Certificate of company ABC.
The combined income of the two salary certificates(ABC plus XYZ)is attracting additional tax which he has been advised to ignore.
What are the repercussions of such an action and what is your advice?
31 July 2012
Concealment of income. Legal morality versus moral legality
05 August 2012
What will happen when his Assessment is selected for scrutiny?
His bank account will reflect the salary from January onward what will be the explanation
It is the duty of the new employer to take a declaration that the employee has no other income from other employers if he gives false declaration then he will-be under problem
His bank account will reflect the salary from January onward what will be the explanation
It is the duty of the new employer to take a declaration that the employee has no other income from other employers if he gives false declaration then he will-be under problem
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