Regarding FORM 16

TDS 907 views 3 replies

nagaramu.m

fresher

24 Points Joined August 2009

Wher en employee is in employment of more than one employer, tax can be deducted at source, in what way it should consider in form 16

For eg:- An employee is worked in NAME(ABC) company for six months,than employee is changed the company name (XYZ) for next six months than how to calculate FORM 16 in an financial year . I mean that tds is considered in both the companies for a particular fianancial year , when tds is deducted by both the companies or not deducted by certain (ABC) company, than what should i do ? .

Replies (3)

CA SUDHAKAR

CHARTERED ACCOUNTANT

189 Points Joined June 2008

Alternatively,

Assuming that , he did not inform the previous employment and issue Form 16, by reporing the salary earned in your company only. However, you may deduct some additional tax liability to cover the short fall in tax liability, when he combined both the salary for filing his return.

Advice the employee, to permit for more deduction of tax from the salary from second employer to cover the shortfall of tax. Otherwise, he will be ended up with payment of interest of around 7.7% of the shortfall in tax, at the time of submitting his return in the month of July 2010.

C.A. M.Com. Suhas A. Nagpure

1175 Points Joined March 2008

In such cases you can ask your Old employeer to issue provisional F16 which includes your all details of salary & TDS. Such F16 shall be submitted to new employer so he will accordingly calculate TDS.