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Question tds on salary?

TDS 1407 views 11 replies

During the previous year 2012-13, X is employed simultaneously by A Ltd. (salary: `1,60,000) and B Ltd. (salary: `2,72,000) on part-time basis. Calculate the amount of tax to be deducted by both the companies.

Please solve this

 

Replies (11)

160,000 + 272,000 = 432,000

Tax liability = 23,896/-

8,842/- TDS for A Ltd

15,054/- TDS for Ltd

 

I hope this is correct

Thank for reply .. i think so 

But practically why should A deduct tds as his income below 2Lac.. 

Yes, Mihir -- I also have the same question. Why should A ltd deduct tax at source. ?

Or B Ltd will deduct about 8,000/- TDS, and A ltd will deduct nil. 

The tax liability can be reduced by investments u/s 80. 

This question is from Test paper of cma but realy confusing ;

 

x will be needed to report one of his employees his other salary income. in case he reports his income, the tds will be deducted by the employer to whom he has reported and he will deduct the tds on total salary.

in case he doesnt report, no tds will be deucted by company a and company b will deduct tds on rs.272000.

TDS will be deducted on the aggregate amount of salary (including salary received from the former or other employer).
.
Salary From More Than One Employer:

Section 192(2) deals with situations where an individual is working under more than one employer or has changed from one employer to another. It provides for deduction of tax at source by such employer (as the taxpayer may choose) from the aggregate salary of the employee who is or has been in receipt of salary from more than one employer. The employee is now required to furnish to the present/chosen employer details of the income under the head "Salaries" due or received from the former/other employer and also tax deducted at source therefrom, in writing and duly verified by him and by the former/other employer. The present/ chosen employer will be required to deduct tax at source on the aggregate amount of salary (including salary received from the former or other employer).

So which one would deduct tds A or B?

Hello Everyone I agree with Ravindera Singh. In case he doesn"t report, no TDS will be deducted by Company A and company B will deduct TDS on 272000/-

Agree with  Ravinder & Mukesh.

 

 

 

the deductor will be choosed by the employee.

The new sub-section (2) inserted in section 192 deals with situations where an individual is working under more than one employer or has changed from one employer to another. It provides for deduction of tax at source by such employer (as the taxpayer may choose) from the aggregate salary of the employee who is or has been in receipt of salary from more than one employer. The employee is now required to furnish to the present/chosen employer details of the income under the head “Salaries” due or received from the former/other employer and also tax deducted at source therefrom, in writing and duly verified by him and by the former/other employer. The present employer will be required to deduct tax at source on the aggregate amount of salary (including salary received from former or other employer).


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