If employee leaves job in middle of fy

you cangive 2.5 lakhs exemption while computing taxable Income and can also consider Investments made in January  nothing wrong 

Exemption is to be given for INR 2.5 lacs. Here assumption is employee has not declared any other income to the employer. Deduction for investment should be given only if you have the proof of investment. If the employee has declared that he will invest but not submitted proof, it is better not to consider that amount for deduction.

Regards

Vineet

www.financeandtaxhub.blogspot.com

Thanks for the reply,

His taxable income for whole year is 4 lac and deducted the TDS considering 4 lac only but he withrawn 3 lac till Dec and left the company. If we show 2.5 lac exemption and investment of january too it will reduce his tax liability.

Is that right?

Originally posted by : Vineet Goyal
	Exemption is to be given for INR 2.5 lacs. Here assumption is employee has not declared any other income to the employer. Deduction for investment should be given only if you have the proof of investment. If the employee has declared that he will invest but not submitted proof, it is better not to consider that amount for deduction.   Regards Vineet www.financeandtaxhub.blogspot.com

Hi Vinit,

He came back to us in Feb asking for 12b then we asked him to submit the investment document and he has given documents for jan and feb too.

Just obtain a letter from the employee that he has no other income during the year (from Jan to Mar). It is the employee's duty to add income from both employers (if he has joined somewhere else and earned salary for 3 months) and then he has to file his income tax return. If any tax is payable he should pay self assessment tax at that time.