Form 16

ITR 717 views 4 replies

Saxena

MAnager Finance

25 Points Joined March 2011

Hi Learned Members

Pls help me out in one confusion I have.

We have computed Income Tax (for 2010-11) for one of our employee who has joined our company in Oct'10, we took his income from the previous employment and gave deductions for the whole year (like Conv. allow. 9600, medical 15000 etc etc) and computed his tax liability for the year and deducted the tax on the same. Now when we are issuing Form 16 we are doing it for the period of his employment (Oct'10 to Mar'11), my question is shall we take the allowances/excemptions on prorated basis for the period of his employment (6 months) or wil it be for the whole year?

If we take it for the whole year as per our Form 16 his tax liability will be less and the tax deduction will be more (coz of income from his previous employment being removed) so can we give form 16 by taking income for 6 months and deductions/excemptions for 12 months. Pls advice

Thanks in advance

Replies (4)

Harpreet

* * * * * *

1670 Points Joined March 2008

You can not show the last employer details in FORM-16

Saxena

MAnager Finance

25 Points Joined March 2011

Originally posted by : Harpreet
	You can not show the last employer details in FORM-16

Thanks for your update Mr. Harpreet, Pls let me know if I am right in saying this....We will issue Form 16 for the period he worked with us and under allowances/excemptions we will take all the eligible amounts per annum (like conveyance allow Rs.9600 etc) and derive his tax liability, and remove the tax deducted by us. The net figure will be negative...

Thanks

SUNNY

STUDENT CS

377 Points Joined February 2010

You can not show the last employer details in FORM-16

CA. Arpita Singhal

Partner

100 Points Joined December 2008

Form 16 is the declaration byt the employer that the required TDS has been deducted from employee's Salary income.

I would like to mention that the TDS deduction liability is limited to the salary paid by the employer and any other income (if any) reported by employee. In your case, If the employee reports the details of previous employer then his income can be clubbed in the present Form 16.

However If an employee is not conveying any such information then Present employer is not liable to consider his incomef rom previous employer.