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How tds to be calculated if i work more than 2 company?

jackin (Others) (53 Points)

05 March 2014

4 and half month i worked on one company, 3 month i worked as consultant and since last 3 months i am working with another company.

Now this present company calculating my tds by multiplying my present salary it with 12 month and then doing process so i have to pay more tds because when i worked as consultant and when i was working in past company my salary was low compared to present salary so it is right way to calculate tds ? or what are other way to calulate tds?

Also employer contribution should also be considered in my salary exemption?

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4 Replies

SHASHANK AGARWAL (self employed) (114 Points)
Replied 05 March 2014

Give the details of your previous salary and TDS deducted on the same to your present employer and he will have to deduct TDS on your present salary after considering the same

for more queries : https://knowyourtaxation.blogspot.in/.

jackin (Others) (53 Points)
Replied 06 March 2014

But now if anyone join in feb month in new compay that means to his present employer has to provide all salary details from april onwards to jan? but i think no company will take such burden and check past record of employee right? or the thing which you told is correct standard?

SHASHANK AGARWAL (self employed) (114 Points)
Replied 06 March 2014

It is obligation of both the employer and the employee to deduct TDS on basis of previous salry and present salary.

https://knowyourtaxation.blogspot.com/

Pradeep Gupta (Accounts Manager) (298 Points)
Replied 06 March 2014

If a person working with more than one employer in any previous year, then in such case he needs to produce either Form 16 or 12 B as per income tax act, so that the current employer can calculate the correct tax payable by the employee based on the information provided.

If the previous employer is unable to provide or not willing to provide the Form 16 then you can furnish form 12 B yourself.

Form 12 B contains the details of your salary, which you can exract from your salary slip of previous employer. Also in Remarks column of Form 12B, you can mention the income from other sources.

But ultimetly who is the responsible for the tax, it is you only.

So you need to make your employer understand, if they do not believe on form 12B or Form 16, then you can give a declaration letter that you have earned this much amount in that particular financial year.

They can't assumed your current salary for the whole year.

If still they are not willing to accept your point, ask to produce the evidence where it has been written that current salary will be presumed for the whole year as income from salary.