Nikesh (Account officer) (55 Points)
19 March 2015Hello Experts,
I am working in accounts dept and I have querry regarding TDS related to employee who left job in Dec month.
The employee who left job has worked from March to Dec for FY2014-15 so my question is at the time of issuing form 12b do we need to consider 2.5lac exeption or on pro rata basis. Also the investment declearation he submited is till march-15 so do we need to consider any investment he made after dec-14.
Thank you.
sivaram
(Asst Mgr-Taxation)
(6918 Points)
Replied 19 March 2015
you cangive 2.5 lakhs exemption while computing taxable Income and can also consider Investments made in January nothing wrong
Vineet Goyal
(Assistant Manager - Finance & Accounts)
(702 Points)
Replied 19 March 2015
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
Nikesh
(Account officer)
(55 Points)
Replied 19 March 2015
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?
Nikesh
(Account officer)
(55 Points)
Replied 19 March 2015
| Originally posted by : Vineet Goyal | ||
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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 |
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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.
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